*10677202020100103*
PROPERTY AND CASUALTY COMPANIES - ASSOCIATION EDITION QUARTERLY STATEMENT AS OF SEPTEMBER 30, 2020 OF THE CONDITION AND AFFAIRS OF THE THE CINCINNATI INSURANCE COMPANY NAIC Group Code 0244 0244 NAIC Company Code 10677 Employer's ID Number 31-0542366 (Current) (Prior) Organized under the Laws of OHIO , State of Domicile or Port of Entry OH
Country of Domicile United States of America
Incorporated/Organized 08/02/1950 Commenced Business 01/23/1951
Statutory Home Office 6200 SOUTH GILMORE ROAD , FAIRFIELD, OH, US 45014-5141 (Street and Number) (City or Town, State, Country and Zip Code)
Main Administrative Office 6200 SOUTH GILMORE ROAD (Street and Number) FAIRFIELD, OH, US 45014-5141 , 513-870-2000 (City or Town, State, Country and Zip Code) (Area Code) (Telephone Number)
Mail Address P.O. BOX 145496 , CINCINNATI, OH, US 45250-5496 (Street and Number or P.O. Box) (City or Town, State, Country and Zip Code)
Primary Location of Books and Records 6200 SOUTH GILMORE ROAD (Street and Number) FAIRFIELD, OH, US 45014-5141 , 513-870-2000 (City or Town, State, Country and Zip Code) (Area Code) (Telephone Number)
Internet Website Address WWW.CINFIN.COM
Statutory Statement Contact ANDREW SCHNELL , 513-870-2000 (Name) (Area Code) (Telephone Number) [email protected] , 513-603-5500 (E-mail Address) (FAX Number)
OFFICERS SENIOR VICE CHIEF EXECUTIVE PRESIDENT, OFFICER, PRESIDENT STEVEN JUSTUS JOHNSTON TREASURER THERESA ANN HOFFER CHIEF FINANCIAL OFFICER, SENIOR VICE PRESIDENT MICHAEL JAMES SEWELL
OTHER TERESA CURRIN CRACAS, SENIOR VICE ANGELA OSSELLO DELANEY #, SENIOR VICE DONALD JOSEPH DOYLE JR, SENIOR VICE PRESIDENT PRESIDENT PRESIDENT CHRISTOPHER THOMAS HOGAN #, SENIOR VICE MARTIN FRANCIS HOLLENBECK, SENIOR VICE SEAN MICHAEL GIVLER, SENIOR VICE PRESIDENT PRESIDENT PRESIDENT JOHN SCOTT KELLINGTON, SENIOR VICE LISA ANNE LOVE, SENIOR VICE PRESIDENT, MARTIN JOSEPH MULLEN, SENIOR VICE PRESIDENT CORPORATE SECRETARY PRESIDENT STEPHEN MICHAEL SPRAY, SENIOR VICE WILLIAM HAROLD VAN DEN HEUVEL, SENIOR VICE STEPHEN ANTHONY VENTRE #, SENIOR VICE PRESIDENT PRESIDENT PRESIDENT
DIRECTORS OR TRUSTEES THOMAS JEFFREY AARON # WILLIAM FOREST BAHL NANCY CUNNINGHAM BENACCI # TERESA CURRIN CRACAS ANGELA OSSELLO DELANEY # DONALD JOSEPH DOYLE JR SEAN MICHAEL GIVLER MARTIN FRANCIS HOLLENBECK STEVEN JUSTUS JOHNSTON JOHN SCOTT KELLINGTON LISA ANNE LOVE JILL PRATT MEYER # MARTIN JOSEPH MULLEN DAVID PAUL OSBORN CHARLES ODELL SCHIFF # THOMAS REID SCHIFF MICHAEL JAMES SEWELL STEPHEN MICHAEL SPRAY JOHN FREDRICK STEELE JR WILLIAM HAROLD VAN DEN HEUVEL LARRY RUSSEL WEBB
State of OHIO SS: County of BUTLER
The officers of this reporting entity being duly sworn, each depose and say that they are the described officers of said reporting entity, and that on the reporting period stated above, all of the herein described assets were the absolute property of the said reporting entity, free and clear from any liens or claims thereon, except as herein stated, and that this statement, together with related exhibits, schedules and explanations therein contained, annexed or referred to, is a full and true statement of all the assets and liabilities and of the condition and affairs of the said reporting entity as of the reporting period stated above, and of its income and deductions therefrom for the period ended, and have been completed in accordance with the NAIC Annual Statement Instructions and Accounting Practices and Procedures manual except to the extent that: (1) state law may differ; or, (2) that state rules or regulations require differences in reporting not related to accounting practices and procedures, according to the best of their information, knowledge and belief, respectively. Furthermore, the scope of this attestation by the described officers also includes the related corresponding electronic filing with the NAIC, when required, that is an exact copy (except for formatting differences due to electronic filing) of the enclosed statement. The electronic filing may be requested by various regulators in lieu of or in addition to the enclosed statement.
STEVEN J. JOHNSTON MICHAEL J. SEWELL THERESA A. HOFFER CHIEF EXECUTIVE OFFICER, PRESIDENT CHIEF FINANCIAL OFFICER, SENIOR VICE SENIOR VICE PRESIDENT, TREASURER PRESIDENT
a. Is this an original filing? Yes [ X ] No [ ] Subscribed and sworn to before me this b. If no, 2ND day of NOVEMBER 2020 1. State the amendment number 2. Date filed 3. Number of pages attached
STATEMENT AS OF SEPTEMBER 30, 2020 OF THE THE CINCINNATI INSURANCE COMPANY ASSETS Current Statement Date 4 1 2 3 December 31 Net Admitted Assets Prior Year Net Assets Nonadmitted Assets (Cols. 1 - 2) Admitted Assets 1. Bonds 6,350,770,679 6,350,770,679 6,336,078,008 2. Stocks: 2.1 Preferred stocks 255,307,978 255,307,978 206,988,198 2.2 Common stocks 5,204,520,602 5,204,520,602 5,341,227,493 3. Mortgage loans on real estate: 3.1 First liens 3.2 Other than first liens 4. Real estate: 4.1 Properties occupied by the company (less $ encumbrances) 8,280,167 8,280,167 8,479,911 4.2 Properties held for the production of income (less $ encumbrances) 4.3 Properties held for sale (less $ encumbrances) 5. Cash ($ 496,731,035 ), cash equivalents ($ 461,973 ) and short-term investments ($ 249,612 ) 497,442,620 497,442,620 350,693,038 6. Contract loans (including $ premium notes) 7. Derivatives 8. Other invested assets 309,397,547 309,397,547 222,922,403 9. Receivables for securities 199,417 199,417 327,738 10. Securities lending reinvested collateral assets 11. Aggregate write-ins for invested assets 12. Subtotals, cash and invested assets (Lines 1 to 11) 12,625,919,009 12,625,919,009 12,466,716,790 13. Title plants less $ charged off (for Title insurers only) 14. Investment income due and accrued 72,131,929 72,131,929 76,318,864 15. Premiums and considerations: 15.1 Uncollected premiums and agents' balances in the course of collection 401,194,008 20,912,339 380,281,669 343,392,686 15.2 Deferred premiums, agents' balances and installments booked but deferred and not yet due (including $ 24,201,457 earned but unbilled premiums) 1,445,616,228 2,420,146 1,443,196,082 1,345,918,038 15.3 Accrued retrospective premiums ($ ) and contracts subject to redetermination ($ ) 16. Reinsurance: 16.1 Amounts recoverable from reinsurers 41,102,255 44,109 41,058,146 36,726,289 16.2 Funds held by or deposited with reinsured companies 21,640,077 21,640,077 15,234,433 16.3 Other amounts receivable under reinsurance contracts 17. Amounts receivable relating to uninsured plans 18.1 Current federal and foreign income tax recoverable and interest thereon 4,742,635 18.2 Net deferred tax asset 19. Guaranty funds receivable or on deposit 20. Electronic data processing equipment and software 22,670,677 22,403,671 267,006 166,049 21. Furniture and equipment, including health care delivery assets ($ ) 4,002,113 4,002,113 22. Net adjustment in assets and liabilities due to foreign exchange rates 23. Receivables from parent, subsidiaries and affiliates 40,923,414 40,923,414 9,384,777 24. Health care ($ ) and other amounts receivable 25. Aggregate write-ins for other than invested assets 59,430,106 17,026,574 42,403,532 29,052,225 26. Total assets excluding Separate Accounts, Segregated Accounts and Protected Cell Accounts (Lines 12 to 25) 14,734,629,815 66,808,952 14,667,820,863 14,327,652,787 27. From Separate Accounts, Segregated Accounts and Protected Cell Accounts 28. Total (Lines 26 and 27) 14,734,629,815 66,808,952 14,667,820,863 14,327,652,787 DETAILS OF WRITE-INS 1101. 1102. 1103. 1198. Summary of remaining write-ins for Line 11 from overflow page 1199. Totals (Lines 1101 through 1103 plus 1198)(Line 11 above) 2501. Equities and Deposits in Pools and Associations 11,864,833 11,864,833 11,398,021 2502. Miscellaneous Receivables 47,565,273 17,026,574 30,538,699 17,654,204 2503. 2598. Summary of remaining write-ins for Line 25 from overflow page 2599. Totals (Lines 2501 through 2503 plus 2598)(Line 25 above) 59,430,106 17,026,574 42,403,532 29,052,225
2 STATEMENT AS OF SEPTEMBER 30, 2020 OF THE THE CINCINNATI INSURANCE COMPANY LIABILITIES, SURPLUS AND OTHER FUNDS 1 2 Current December 31, Statement Date Prior Year 1. Losses (current accident year $ 1,515,981,287 ) 4,623,673,875 4,092,298,232 2. Reinsurance payable on paid losses and loss adjustment expenses 43,607,015 45,319,980 3. Loss adjustment expenses 1,130,068,822 1,106,206,645 4. Commissions payable, contingent commissions and other similar charges 157,117,712 193,749,079 5. Other expenses (excluding taxes, licenses and fees) 29,986,183 63,297,478 6. Taxes, licenses and fees (excluding federal and foreign income taxes) 11,626,679 18,881,913 7.1 Current federal and foreign income taxes (including $ on realized capital gains (losses)) 4,222,984 7.2 Net deferred tax liability 284,014,132 349,118,590 8. Borrowed money $ and interest thereon $ 9. Unearned premiums (after deducting unearned premiums for ceded reinsurance of $ 34,878,341 and including warranty reserves of $ and accrued accident and health experience rating refunds including $ for medical loss ratio rebate per the Public Health Service Act) 2,736,867,453 2,539,425,906 10. Advance premium 22,643,910 17,528,515 11. Dividends declared and unpaid: 11.1 Stockholders 100,000,000 11.2 Policyholders 12,550,000 12,880,000 12. Ceded reinsurance premiums payable (net of ceding commissions) 32,767,113 19,788,976 13. Funds held by company under reinsurance treaties 14. Amounts withheld or retained by company for account of others 9,617,512 555,846 15. Remittances and items not allocated 40,367 139,941 16. Provision for reinsurance (including $ certified) 1,018,621 1,018,621 17. Net adjustments in assets and liabilities due to foreign exchange rates 18. Drafts outstanding 19. Payable to parent, subsidiaries and affiliates 20,606,142 29,780,978 20. Derivatives 21. Payable for securities 19,085,003 3,812,690 22. Payable for securities lending 23. Liability for amounts held under uninsured plans 24. Capital notes $ and interest thereon $ 25. Aggregate write-ins for liabilities 156,159,998 114,173,344 26. Total liabilities excluding protected cell liabilities (Lines 1 through 25) 9,295,673,521 8,707,976,732 27. Protected cell liabilities 28. Total liabilities (Lines 26 and 27) 9,295,673,521 8,707,976,732 29. Aggregate write-ins for special surplus funds 30. Common capital stock 3,586,355 3,586,355 31. Preferred capital stock 32. Aggregate write-ins for other than special surplus funds 33. Surplus notes 34. Gross paid in and contributed surplus 363,410,416 363,410,416 35. Unassigned funds (surplus) 5,005,150,571 5,252,679,284 36. Less treasury stock, at cost: 36.1 shares common (value included in Line 30 $ ) 36.2 shares preferred (value included in Line 31 $ ) 37. Surplus as regards policyholders (Lines 29 to 35, less 36) 5,372,147,342 5,619,676,055 38. Totals (Page 2, Line 28, Col. 3) 14,667,820,863 14,327,652,787 DETAILS OF WRITE-INS 2501. Accounts Payable -- Other 22,547,129 16,823,752 2502. Liability for Unfunded Commitments 133,612,869 97,349,592 2503. 2598. Summary of remaining write-ins for Line 25 from overflow page 2599. Totals (Lines 2501 through 2503 plus 2598)(Line 25 above) 156,159,998 114,173,344 2901. 2902. 2903. 2998. Summary of remaining write-ins for Line 29 from overflow page 2999. Totals (Lines 2901 through 2903 plus 2998)(Line 29 above) 3201. 3202. 3203. 3298. Summary of remaining write-ins for Line 32 from overflow page 3299. Totals (Lines 3201 through 3203 plus 3298)(Line 32 above)
3 STATEMENT AS OF SEPTEMBER 30, 2020 OF THE THE CINCINNATI INSURANCE COMPANY STATEMENT OF INCOME 1 2 3 Current Prior Year Prior Year Ended Year to Date to Date December 31 UNDERWRITING INCOME 1. Premiums earned: 1.1 Direct (written $ 3,299,772,865 ) 3,190,049,978 3,048,976,847 4,092,725,995 1.2 Assumed (written $ 933,571,672 ) 827,797,352 732,456,572 988,496,023 1.3 Ceded (written $ 144,722,439 ) 135,456,821 129,723,212 170,160,203 1.4 Net (written $ 4,088,622,098 ) 3,882,390,509 3,651,710,208 4,911,061,815 DEDUCTIONS: 2. Losses incurred (current accident year $ 2,364,288,392 ): 2.1 Direct 1,861,900,079 1,702,732,183 2,294,475,893 2.2 Assumed 483,330,113 359,595,158 484,712,407 2.3 Ceded 30,501,380 68,723,894 152,325,999 2.4 Net 2,314,728,813 1,993,603,448 2,626,862,300 3. Loss adjustment expenses incurred 424,117,112 364,348,143 503,999,239 4. Other underwriting expenses incurred 1,198,005,831 1,152,101,685 1,533,967,429 5. Aggregate write-ins for underwriting deductions 6. Total underwriting deductions (Lines 2 through 5) 3,936,851,756 3,510,053,276 4,664,828,968 7. Net income of protected cells 8. Net underwriting gain or (loss) (Line 1 minus Line 6 + Line 7) (54,461,247) 141,656,932 246,232,847 INVESTMENT INCOME 9. Net investment income earned 341,076,725 323,719,265 417,655,057 10. Net realized capital gains (losses) less capital gains tax of $ 5,119,868 (7,089,566) 3,874,262 (3,256,554) 11. Net investment gain (loss) (Lines 9 + 10) 333,987,159 327,593,526 414,398,503 OTHER INCOME 12. Net gain or (loss) from agents’ or premium balances charged off (amount recovered $ 2,970,556 amount charged off $ 6,202,376 ) (3,231,820) (2,588,193) (3,293,708) 13. Finance and service charges not included in premiums 5,587,517 6,820,309 9,077,432 14. Aggregate write-ins for miscellaneous income 1,058,436 1,484,547 1,868,050 15. Total other income (Lines 12 through 14) 3,414,133 5,716,663 7,651,774 16. Net income before dividends to policyholders, after capital gains tax and before all other federal and foreign income taxes (Lines 8 + 11 + 15) 282,940,045 474,967,121 668,283,124 17. Dividends to policyholders 7,650,219 9,108,270 11,961,179 18. Net income, after dividends to policyholders, after capital gains tax and before all other federal and foreign income taxes (Line 16 minus Line 17) 275,289,826 465,858,851 656,321,945 19. Federal and foreign income taxes incurred 26,842,567 59,147,166 98,212,380 20. Net income (Line 18 minus Line 19)(to Line 22) 248,447,260 406,711,685 558,109,564 CAPITAL AND SURPLUS ACCOUNT 21. Surplus as regards policyholders, December 31 prior year 5,619,676,056 4,919,104,373 4,919,104,373 22. Net income (from Line 20) 248,447,260 406,711,685 558,109,564 23. Net transfers (to) from Protected Cell accounts 24. Change in net unrealized capital gains (losses) less capital gains tax of $ (47,774,583) (179,498,318) 498,981,027 763,264,873 25. Change in net unrealized foreign exchange capital gain (loss) 26. Change in net deferred income tax 17,329,875 1,092,715 6,283,508 27. Change in nonadmitted assets (8,807,531) (6,892,185) (1,089,828) 28. Change in provision for reinsurance (996,435) 29. Change in surplus notes 30. Surplus (contributed to) withdrawn from protected cells 31. Cumulative effect of changes in accounting principles 32. Capital changes: 32.1 Paid in 32.2 Transferred from surplus (Stock Dividend) 32.3 Transferred to surplus 33. Surplus adjustments: 33.1 Paid in 33.2 Transferred to capital (Stock Dividend) 33.3 Transferred from capital 34. Net remittances from or (to) Home Office 35. Dividends to stockholders (325,000,000) (400,000,000) (625,000,000) 36. Change in treasury stock 37. Aggregate write-ins for gains and losses in surplus 38. Change in surplus as regards policyholders (Lines 22 through 37) (247,528,714) 499,893,242 700,571,683 39. Surplus as regards policyholders, as of statement date (Lines 21 plus 38) 5,372,147,342 5,418,997,615 5,619,676,056 DETAILS OF WRITE-INS 0501. 0502. 0503. 0598. Summary of remaining write-ins for Line 5 from overflow page 0599. Totals (Lines 0501 through 0503 plus 0598)(Line 5 above) 1401. Collection Fees 957,304 957,390 1,274,074 1402. Miscellaneous Interest 101,132 527,157 593,976 1403. 1498. Summary of remaining write-ins for Line 14 from overflow page 1499. Totals (Lines 1401 through 1403 plus 1498)(Line 14 above) 1,058,436 1,484,547 1,868,050 3701. 3702. 3703. 3798. Summary of remaining write-ins for Line 37 from overflow page 3799. Totals (Lines 3701 through 3703 plus 3798)(Line 37 above)
4 STATEMENT AS OF SEPTEMBER 30, 2020 OF THE THE CINCINNATI INSURANCE COMPANY CASH FLOW 1 2 3 Current Year Prior Year Prior Year Ended To Date To Date December 31
Cash from Operations
1. Premiums collected net of reinsurance 3,953,637,061 3,758,055,645 5,001,233,447
2. Net investment income 371,620,009 353,043,071 449,821,109
3. Miscellaneous income (3,075,262) 1,994,931 6,220,479
4. Total (Lines 1 to 3) 4,322,181,808 4,113,093,648 5,457,275,035
5. Benefit and loss related payments 2,181,901,137 2,317,736,791 3,082,233,512
6. Net transfers to Separate Accounts, Segregated Accounts and Protected Cell Accounts
7. Commissions, expenses paid and aggregate write-ins for deductions 1,269,682,820 1,172,663,727 1,492,938,140
8. Dividends paid to policyholders 7,980,219 9,347,962 12,480,871
9. Federal and foreign income taxes paid (recovered) net of $ 4,744,199 tax on capital
gains (losses) 22,996,816 (15,933,395) (2,422,252)
10. Total (Lines 5 through 9) 3,482,560,992 3,483,815,085 4,585,230,271
11. Net cash from operations (Line 4 minus Line 10) 839,620,816 629,278,563 872,044,763
Cash from Investments
12. Proceeds from investments sold, matured or repaid:
12.1 Bonds 381,016,940 437,186,191 568,711,940
12.2 Stocks 176,068,694 66,395,699 70,464,968
12.3 Mortgage loans
12.4 Real estate
12.5 Other invested assets
12.6 Net gains or (losses) on cash, cash equivalents and short-term investments (393) (172) (243)
12.7 Miscellaneous proceeds 15,400,635 5,580,836 3,812,690
12.8 Total investment proceeds (Lines 12.1 to 12.7) 572,485,876 509,162,554 642,989,355
13. Cost of investments acquired (long-term only):
13.1 Bonds 456,162,661 601,855,438 760,319,020
13.2 Stocks 265,211,519 113,805,738 129,747,665
13.3 Mortgage loans
13.4 Real estate 189,185 218,154
13.5 Other invested assets 65,319,062 27,758,968 42,484,907
13.6 Miscellaneous applications 2,495,947 327,738
13.7 Total investments acquired (Lines 13.1 to 13.6) 786,693,242 746,105,276 933,097,485
14. Net increase (or decrease) in contract loans and premium notes
15. Net cash from investments (Line 12.8 minus Line 13.7 and Line 14) (214,207,366) (236,942,722) (290,108,130)
Cash from Financing and Miscellaneous Sources
16. Cash provided (applied):
16.1 Surplus notes, capital notes
16.2 Capital and paid in surplus, less treasury stock
16.3 Borrowed funds
16.4 Net deposits on deposit-type contracts and other insurance liabilities
16.5 Dividends to stockholders 425,000,000 500,000,000 625,000,000
16.6 Other cash provided (applied) (53,663,868) (30,502,515) (28,473,856)
17. Net cash from financing and miscellaneous sources (Line 16.1 through Line 16.4 minus Line 16.5 plus Line 16.6) (478,663,868) (530,502,515) (653,473,856)
RECONCILIATION OF CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS
18. Net change in cash, cash equivalents and short-term investments (Line 11, plus Lines 15 and 17) 146,749,582 (138,166,674) (71,537,223)
19. Cash, cash equivalents and short-term investments:
19.1 Beginning of year 350,693,038 422,230,260 422,230,260
19.2 End of period (Line 18 plus Line 19.1) 497,442,620 284,063,587 350,693,038
Note: Supplemental disclosures of cash flow information for non-cash transactions:
5 STATEMENT AS OF SEPTEMBER 30, 2020 OF THE CINCINNATI INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
1. Summary of Significant Accounting Policies and Going Concern
A. Accounting Practices
The financial statements of The Cincinnati Insurance Company (the Company) are presented on the basis of accounting practices prescribed or permitted by the Ohio Department of Insurance.
The Ohio Department of Insurance recognizes only statutory accounting practices prescribed or permitted by the state of Ohio for determining and reporting the financial condition and results of operations of an insurance company, and for determining its solvency under the Ohio Insurance Law. The National Association of Insurance Commissioners’ Accounting Practices and Procedures Manual (NAIC SAP), version effective January 1, 2001 and updates through the current year have been adopted as a component of prescribed or permitted practices by the state of Ohio.
The Company has no prescribed or permitted practices that would result in differences between the NAIC SAP and the state of Ohio basis, as shown below as of September 30, 2020 and December 31, 2019:
F/S F/S SSAP # Page Line # 2020 2019 NET INC OME (1) Company stat e basis (P age 4, Line 20, Columns 1 & 2) XXX XXX XXX $ 248,447,260 $ 558,109,564 (2) State Pr escrib ed Pr actic es that increase/(decrease) NAIC SAP N/A N/A N/A 0 0 (3) State Permitt ed Pr actices tha t increase/(decrease) NAIC SAP N/A N/A N/A 0 0 (4) NA IC SAP (1-2-3=4) XXX XXX XXX $ 248,447,260 $ 558,109,564 SUR PLUS (5) Company state basis (Page 3, Line 37, Columns 1 & 2) XXX XXX XXX $5,372,147,342 $5,619,676,055 (6) State Pr escrib ed Pr actic es that increase/(decrease) NAIC SAP N/A N/A N/A 0 0 (7) State Permitted Practices that increase/(decrease) NAIC SAP N/A N/A N/A 0 0 (8) NA IC SAP (5-6-7=8) XXX XXX XXX $5,372,147,342 $5,619,676,055
B. Use of Estimates in the Preparation of the Financial Statements – No significant change
C. Accounting Policies
6. Loan-backed and structured securities with an NAIC designation 1 or 2 are stated at amortized cost. Loan-backed and structured securities with an NAIC designation 3 through 6 are stated at the lower of amortized cost or fair value, with the difference reflected in assigned surplus. Amortized cost of loan-backed and structured securities is determined using the retrospective adjustment method, except for those which an other-than-temporary impairment has been recognized, which use the prospective adjustment method to determine amortized cost.
D. Going Concern
After review of the Company’s financial condition, management has no doubts about the Company’s ability to continue as a going concern.
2. Accounting Changes and Correction of Errors – No significant change
3. Business Combinations and Goodwill – Not applicable
4. Discontinued Operations – Not applicable
5. Investments
A. Mortgage Loans – Not applicable
B. Debt Restructuring – Not applicable
C. Reverse Mortgages – Not applicable
D. Loan-Backed Securities
1. The Company obtains prepayment assumptions from third-party vendors.
2. The Company recognized no other-than-temporary impairments for loan-backed and structured securities due to the intent to sell or the inability or lack of intent to retain the investment in the security for a period of time sufficient to recover the amortized cost basis during the quarter and nine months ended September 30, 2020.
3. The Company recognized no other-than-temporary impairments due to the present value of cash flows expected to be collected being less than the amortized cost basis for loan-backed and structured securities during the quarter and nine months ended September 30, 2020.
4. The following table presents the aggregate total of all impaired loan-backed and structured securities (fair value is less than cost or amortized cost) for which an other-than-temporary impairment has not been recognized in earnings as a realized loss (including securities with a recognized other-than-temporary impairment for non-interest related declines when a non-recognized interest related impairment remains):
The aggregate amount of unrealized losses: 1. Less than 12 months $ (255,192) 2. 12 months or longer 0
6.1 STATEMENT AS OF SEPTEMBER 30, 2020 OF THE CINCINNATI INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
The aggregate related fair value of securities with unrealized losses: 1. Less than 12 months $ 9,284,345 2. 12 months or longer 0
5. The Company performs a quarterly analysis to assess whether the decline in the fair value of any loan-backed or structured security is other-than-temporary. Factors considered in determining whether a decline in fair value is considered other-than-temporary included the length of time and the extent to which the fair value of the security has been below cost or amortized cost and changes in credit ratings of the issue during the period. The intent to sell, the intent and ability to hold the security for a period of time sufficient to recover its cost or amortized cost basis and the ability to recover all outstanding amounts when contractually due are also considered. Based upon this analysis the Company believes there were no indications of declines in fair value that were considered to be other-than-temporary for any loan-backed or structured securities with unrealized losses as of September 30, 2020.
E. Dollar Repurchase Agreements and/or Securities Lending Transactions – Not applicable
F. Repurchase Agreements Transactions Accounted for as Secured Borrowing – Not applicable
G. Reverse Repurchase Agreements Transactions Accounted for as Secured Borrowing – Not applicable
H. Repurchase Agreements Transactions Accounted for as a Sale – Not applicable
I. Reverse Repurchase Agreements Transactions Accounted for as a Sale – Not applicable
J. Real Estate - Not applicable
K. Investments in Low-income Housing Tax Credits (LIHTC) – No significant change
L. Restricted Assets – No significant change
M. Working Capital Finance Investments – Not applicable
N. Offsetting and Netting of Assets and Liabilities – Not applicable
O. 5GI Securities – No significant change
P. Short Sales – Not applicable
Q. Prepayment Penalty and Acceleration Fees – No significant change
6. Joint Ventures, Partnerships and Limited Liability Companies – No significant change
7. Investment Income – No significant change
8. Derivative Instruments – Not applicable
9. Income Taxes
A. Components of Deferred Tax Assets (DTAs) and Deferred Tax Liabilities (DTLs):
1.
September 30, 20 20 Ordinary Capital Total (a) Gross Deferred Tax Assets $ 21 6,786,789 $ 0 $ 21 6,786,789 (b) Statutory Valuation Allowance Adjustments 0 0 0 (c) Adjusted Gross Deferred Tax Assets (1a - 1b) 216,786,789 0 216,786,789 (d) Deferred Tax Assets Nonadmitted 0 0 0 (e) Subtotal Net Admitted Deferred Tax Asset (1c - 1d) 216,786,789 0 216,786,789 (f) Deferred Tax Liabilities $ 51,673,789 $ 449,127,132 $ 500,800,921 (g) Net Admitted Deferred Tax Asset/(Liability) (1e - 1f) $ 165,113,000 $(449,127,132) $(284,014,132)
December 31, 201 9 Ordinary Capital Total (a) Gross Deferred Tax Assets $ 202,288,536 $ 0 $ 202,288,536 (b) Statutory Valuation Allowance Adjustments 0 0 0 (c) Adjusted Gross Deferred Tax Assets (1a - 1b) 202,288,536 0 202,288,536 (d) Deferred Tax Assets Nonadmitted 0 0 0 (e) Subtotal Net Admitted Deferred Tax Asset (1c - 1d) 202,288,536 0 202,288,536 (f) Deferred Tax Liabilities $ 48,736,210 $ 502,670,916 $ 551,407,126 (g) Net Admitted Deferred Tax Asset/(Liability) (1e - 1f) $ 153,552,326 $(502,670,916) $(349,118,590)
Change Ordinary Capital Total (a) Gross Deferred Tax Assets $ 14,498,253 $ 0 $ 14,498,253 (b) Statutory Val uation Allowance Adjustments 0 0 0 (c) Adjusted Gross Deferred Tax Assets (1a - 1b) 14,498,253 0 14,498,253 (d) Deferred Tax Assets Nonadmitted 0 0 0 (e) Subtotal Net Admitted Deferred Tax Asset (1c - 1d) 14,498,253 0 14,498,253 (f) Deferred Tax Liabilities $ 2,937,579 $ (53,543,784 ) $ (50,606,205 ) (g) Net Admitted Deferred Tax Asset/(Liability) (1e - 1f) $ 11,560,674 $ 53,543,784 $ 65,104,458
6.2 STATEMENT AS OF SEPTEMBER 30, 2020 OF THE CINCINNATI INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
2.
September 30, 2020 Admission Calculation Components SSAP No. 101 Ordinary Capital Total (a) Federal Income Taxes Paid in Prior Years Recoverable Through Loss Carrybacks $ 131,024,616 $ 0 $ 131,024,616 (b) Adjusted Gross Deferred Tax Assets Expected to be Realized (Excluding The Amount of Deferred Tax Assets From 2(a) above) After Application of the Threshold Limitation. (The lesser of 2(b)1 and 2(b)2 Below) 52,514,196 0 52,514,196 1. Adjusted Gross Deferred Tax Assets
Expected to be Realized Following the Balance Sheet Date 52,514,196 0 52,514,196 2. Adjusted Gross Deferred Tax Assets Allowed per Limitation Threshold XXX XXX 805,782,050 (c) Adjusted Gross Deferred Tax Assets
(Excluding the amount of Deferred Tax Assets
from 2(a) and 2(b) above) Offset by Gross Deferred Tax Liabilities 33,247,977 0 33,247,977 (d) Deferred Tax Assets Admitted as the Result of Application of SSAP No.101 Total (2(a)+2(b)+2(c) $ 216,786,789 $ 0 $ 216,786,789
December 31, 2019 Admission Calculation Components SSAP No. 101 Ordinary Capital Total (a) Federal Income Taxes Paid in Prior Years Recoverable Through Loss Carrybacks $ 165,815,190 $ 0 $ 165,815,190 (b) Adjusted Gross Deferred Tax Assets Expected to be Realized (Excluding The Amount of Deferred Tax Assets From 2(a) above) After Application of the Threshold Limitation. (The lesser of 2(b)1 and 2(b)2 Below) 8,439,164 0 8,439,164 1. Adjusted Gross Deferred Tax Assets
Expected to be Realized Following the Balance Sheet Date 8,439,164 0 8,439,164 2. Adjusted Gross Deferred Tax Assets Allowed per Limitation Threshold XXX XXX 842,926,501 (c) Adjusted Gross Deferred Tax Assets
(Excluding the amount of Deferred Tax Assets
from 2(a) and 2(b) above) Offset by Gross Deferred Tax Liabilities 28,034,182 0 28,034,182 (d) Deferred Tax Assets Admitted as the Result of Application of SSAP No.101 Total (2(a)+2(b)+2(c) $ 202,288,536 $ 0 $ 202,288,536
Change Admission Calculation Components SSAP No. 101 Ordinary Capital Total (a) Federal Income Taxes Paid in Prior Years Recoverable Through Loss Carrybacks $ (34,790,574) $ 0 $ (34,790,574) (b) Adjusted Gross Deferred Tax Assets Expected to be Realized (Excluding The Amount of Deferred Tax Assets From 2(a) above) After Application of the Threshold Limitation. (The lesser of 2(b)1 and 2(b)2 Below) 44,075,032 0 44, 075,032 1. Adjusted Gross Deferred Tax Assets
Expected to be Realized Following the Balance Sheet Date 44,075,032 0 44,075,032 2. Adjusted Gross Deferred Tax Assets Allowed per Limitation Threshold XXX XXX (37,144,451 ) (c) Adjusted Gross Deferred Tax Assets
(Excluding the amount of Deferred Tax Assets
from 2(a) and 2(b) above) Offset by Gross Deferred Tax Liabilities 5,213,795 0 5,213,795 (d) Deferred Tax Assets Admitted as the Result of Application of SSAP No.101 Total (2(a)+2(b)+2(c) $ 14,498,253 $ 0 $ 14,498,253
3.
2020 2019 Percentage Percentage (a) Ratio Percentage Used to Determine Recovery Period and Threshold Limitation Amount 687% 687% (b) Amount of Adjusted Capital and Surplus Used to Determine Recovery Period and Threshold Limitation in 2(b)2 above $5,654,417,610 $5,654,417,610
4.
September 30, 20 20 Impact of Tax Planning Strategies Ordinary Capital Total (a) Determination of adjusted gross deferred tax assets and net admitted deferred tax assets, by tax character as a percentage. 1. Adjusted Gross DTAs amount from Note 9A1(c) $ 216,786,789 $ 0 $ 216,786,789 2. Percentage of Adjusted gross DTAs
by tax character attributable to the impact of tax planning strategies 0.00% 0.00% 0.00% 3. Net Admitted Adjusted Gross DTAs amount from Note 9A1(e) $ 216,786,789 $ 0 $ 216,786,789 4. Percentage of net admitted adjusted
gross DTAs by tax character admitted
because of the impact of tax planning strategies 0.00% 0.00% 0.00% (b) The Company's tax-planning strategies did not include the use of reinsurance-related tax planning strategies.
6.3 STATEMENT AS OF SEPTEMBER 30, 2020 OF THE CINCINNATI INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
December 31, 201 9 Im pact of Tax Planning Strategies Ordinary Capital Total (a) Determination of adjusted gross deferred tax assets and net admitted deferred tax assets, by tax character as a percentage. 1. Adjusted Gross DTAs amount from Note 9A1(c) $ 202,288,536 $ 0 $ 202,288,536 2. Percentage of Adjusted gross DTAs
by tax character attributable to the impact of tax planning strategies 0.00% 0.00% 0.00% 3. Net Admitted Adjusted Gross DTAs amount from Note 9A1(e) $ 202,288,536 $ 0 $ 202,288,536 4. Percentage of net admitted adjusted
gross DTAs by tax character admitted
because of the impact of tax planning strategies 0.00% 0.00% 0.00% (b) The Company's tax-planning strategies did not include the use of reinsurance-related tax planning strategies.
Change Impact of Tax Planning Strategies Ordinary Capital Total (a) Determination of adjusted gross deferred tax assets and net admitted deferred tax assets, by tax character as a percentage. 1. Adjusted Gross DTAs amount from Note 9A1(c) $ 14,498,253 $ 0 $ 14,498,253 2. Percentage of Adjusted gross DTAs
by tax character attributable to the impact of tax planning strategies 0.00% 0.00% 0.00% 3. Net Admitted Adjusted Gross DTAs amount from Note 9A1(e) $ 14,498,253 $ 0 $ 14,498,253 4. Percentage of net admitted adjusted
gross DTAs by tax character admitted
because of the impact of tax planning strategies 0.00% 0.00% 0.00% (b) The Company's tax-planning strategies did not include the use of reinsurance-related tax planning strategies.
B. Unrecognized DTLs – Not applicable
C. Current Tax and Change in Deferred Tax
1. Current income tax: September 30, December 31, 2020 2019 Change (a) Federal $ 26,345,378 $ 97,609,217 $ (71,263,839 ) (b) Foreign 497,189 603,163 (105,974) (c) Subtotal 26,842,567 98,212,380 (71,369,813 ) (d) Federal income tax on capital gains/(losses) 5,119,868 (1,181,023) 6,300,891 (e) Utilization of capital loss carryforwards 0 0 0 (f) Other 0 0 0 (g) Federal income taxes incurred $ 31,962,435 $ 97,031,357 $ (65,068,922 )
2. Deferred tax assets: September 30, December 31, 20 20 201 9 Change (a) Ordinary 1. Unearned premium reserve $ 114,948,433 $ 106,655,889 $ 8,292,544 2. Unpaid loss reserve 72,980,713 60,720,369 12,260,344 3. Contingent commission 0 0 0 4. Nonadmitted assets 14,029,880 12,180,298 1,849,582 5. Other deferred tax assets 14,827, 763 22,731,980 (7,904,217 ) 99. Subtotal $ 216,786,789 $ 202,288,536 $ 14,498,253 (b) Statutory valuation allowance adjustment 0 0 0 (c) Nonadmitted 0 0 0 (d) Admitted ordinary deferred tax assets (2(a)99-2(b)-2(c)) $ 216,786,789 $ 202,288,536 $ 14,498,253 (e) Capital 1. Investments $ 0 $ 0 $ 0 2. Unrealized (gain)/loss on investments 0 0 0 99. Subtotal $ 0 $ 0 $ 0 (f) Statutory valuation allowance adjustment 0 0 0 (g) Nonadmitted 0 0 0 (h) Admitted capital deferred tax assets ((2(e)99- 2(f)-2(g)) $ 0 $ 0 $ 0 (i) Admitted deferred tax assets (2(d)+2(h)) $ 216,786,789 $ 202,288,536 $ 14,498,253
3. Deferred tax liabilities: September 30, December 31, 2020 2019 Change (a) Ordinary 1. Commission expense $ 45,679,131 $ 42,776,186 $ 2,902,945 2. Other, net 5,994,658 5,960,024 34,634 99. Subtotal $ 51,673,789 $ 48,736,210 $ 2,937,579 (b) Capital 1. Investments $ 10,445,436 $ 16,214,637 $ (5,769,201) 3. Unrealized (gain)/loss on investments 438,681,696 486,456,279 (47,774,583 ) 99. Subtotal $ 449,127,132 $ 502,670,916 $ (53,543,784 ) (c) Deferred tax liabilities (3(a)99+3(b)99) $ 500,800,921 $ 551,407,126 $ (50,606,205 )
4. Net deferred tax assets/(liabilities) (2(i)-3(c)): $(284,014,132 ) $(349,118,590) $ 65,104,458
6.4 STATEMENT AS OF SEPTEMBER 30, 2020 OF THE CINCINNATI INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
The change in net deferred income taxes is comprised of the following (this analysis is exclusive of nonadmitted assets as the Change in Nonadmitted Assets is reported separately from the Change in Net Deferred Income Taxes in the surplus section of the Annual Statement):
September 30, December 31, 2020 2019 Change Total deferred tax assets $ 216,786,789 $ 202,288,536 $ 14,498,253 Total deferred tax liabilities 500,800,921 551,407,126 (50,606,205 ) Net deferred tax asset/(liability) $ (284,014,132 ) $ (349,118,590) $ 65,104,458 Tax effect of unrealized (gains)/losses (47,774,583) Change in net deferred income tax (charge)/benefit $ 17,329,875
December 31, December 31, 2019 2018 Change Total deferred tax assets $ 202,288,536 $ 186,204,248 $ 16,084,288 Total deferred tax liabilities 551,407,126 367,469,364 183,937,762 Net deferred tax asset/(liability) $ (349,118,590) $ (181,265,116) $ (167,853,474) Tax effect of unrealized (gains)/losses 174,136,982 Change in net deferred income tax (charge)/benefit $ 6,283,508
D. Reconciliation of Federal Income Tax Rate to Actual Effective Rate
The provision for federal income taxes incurred is different from that which would be obtained by applying the statutory federal income tax rate to income before income taxes. The significant items causing this difference are as follows:
Description As of September 30, 20 20 Effective Tax Amount Tax Effect Rate Incom e before taxes $ 280,409,695 $ 58,886,036 21 .00 % Net tax exempt interest (55,185,052) (11,588,861) (4.13)% Net dividends received deduction (DRD) (33,199,964 ) (6,971,992 ) (2. 49 )% Other items permanent, net (113,984,822) (23,936,813) (8.54)% DRD on accrued 446,534 93,772 0. 04 % Total $ 78,486,391 $ 16,482,142 5.88 %
Federal income tax expense incurred /(benefit) $ 127,821,748 $ 26,842,567 9.57 % Tax on capital gains/(losses) 24,380,324 5,119,868 1.83 % Change in nonadmitted excluding deferred tax asset 8,807,533 1,849,582 0.66 % Change in net deferred income tax charge/(benefit) (82,523,214) (17,329,875) (6.18)% Total statutory income taxes incurred $ 78,486,391 $ 16,482,142 5.88 %
Des cription As of December 31, 201 9 Effective Tax Amount Tax Effect Rate Income before taxes $ 655,140,924 $ 137,579,594 21.00 % Net tax exempt interest (74,088,876) (15,558,664) (2.37)% Net dividends received deduction (DRD) (39,781,693) (8,354,156) (1.28)% Other items permanent, net (107,954,285) (22,670,399) (3.46)% DRD on accrued (93,627) (19,662) 0.00 % Total $ 433,222,443 $ 90,976,713 13.89 %
Federal income tax expense incurred/(benefit) $ 467,678,000 $ 98,212,380 14.99 % Tax on capital gains/(losses) (5,623,919) (1,181,023) (0.18)% Change in nonadmitted excluding deferred tax asset 1,089,829 228,864 0.03 % Change in net deferred income tax charge/(benefit) (29,921,467) (6,283,508) (0. 95)% Total statutory income taxes incurred $ 433,222,443 $ 90,976,713 13.89 %
E. Operating Loss and Tax Credit Carryforwards
At September 30, 2020 the Company had no net operating loss carryforwards or capital loss carryforwards.
The following is income tax expense for the current and prior years that is available for recoupment in the event of future net losses:
Year Ordinary Capital Total 2020 $ 17,764,849 $ 5,771,489 $ 23,536,338 2019 105,825,949 1,662,331 107,488,280 2018 0 26,255,930 26,255,930 Total $ 123,590,798 $ 33,689,750 $ 157,280,548
At September 30, 2020 the Company had no protective tax deposits under Section 6603 of the Internal Revenue Code.
F. Consolidated Federal Income Tax Return
1. The Company’s federal income tax return is consolidated with the following entities:
Cincinnati Financial Corporation (Parent) The Cincinnati Life Insurance Company The Cincinnati Casualty Company The Cincinnati Indemnity Company The Cincinnati Specialty Underwriters Insurance Company CFC Investment Company CSU Producer Resources, Inc.
2. The method of allocation between the companies is subject to a written agreement, approved by the Board of Directors, whereby allocation is made primarily on a separate return basis, with the company receiving a current benefit for losses generated to the extent federal taxes are reduced for the consolidated tax group.
G. Federal or Foreign Income Tax Loss Contingencies
The Company did have tax contingencies under the principles of SSAP No. 5, Liabilities, Contingencies and Impairment of Assets . As of September 30, 2020, we had a gross unrecognized tax benefit of $31.4 million. This amount carried is for an unrecognized tax benefit for 2018. The entire amount of our liability, if recognized, would impact the effective tax rate. We
6.5 STATEMENT AS OF SEPTEMBER 30, 2020 OF THE CINCINNATI INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
believe that it is reasonably possible that a decrease for the full amount of our $31.4 million of unrecognized benefits, all of which relates to our tax base insurance claims and reserve deduction, may be necessary within the coming year. Such a decrease is possible when the IRS processes our income tax return filing for the 2018 tax year. This gross unrecognized tax benefit of $31.4 million has been netted for a final current federal and foreign income tax recoverable of $4.0 million. The Company is primarily subject to examination by U.S. federal and various U.S. state and local tax authorities. The statute of limitations for federal tax purposes has closed for tax years 2016 and earlier. The statute of limitations for state income tax purposes has closed for tax years 2016 and earlier. In 2019, the IRS began its examination of the tax year ended December 31, 2017 and has been expanded to include tax year ended December 31, 2018. At this time, no adjustments have been proposed.
H. The Company is not subject to Repatriation Transition Tax as outlined under the Tax Cuts and Jobs Act (TCJA).
I. There was $0 of AMT Credit Carryforward as of the beginning of the year. In addition, there were no current year adjustments resulting in $0 of AMT Credit Carryforward at the end of the year.
10. Information Concerning Parent, Subsidiaries, Affiliates and Other Related Parties
A. Nature of Relationships – No significant change
B. Detail of Transactions Greater than ½% of Admitted Assets
The Company paid the following dividends to Cincinnati Financial Corporation:
Date Amount Type January 22, 2020 $ 100,000,000 Ordinary April 20, 2020 $ 125,000,000 Ordinary July 23, 2020 $ 100,000,000 Ordinary September 24, 2020 $ 100,000,000 Ordinary
C. Change in Terms of Intercompany Agreements – Not Applicable
D. Amounts Due to or from Related Parties
The Company issued a short-term loan to the Ultimate Parent, Cincinnati Financial Corporation, as of September 1, 2020, for $30.0 million. This note has a maturity date of October 31, 2020, but may renew monthly, and bears interest at a rate of 1.1150% .
E. Guarantees or Contingencies for Related Parties – Not applicable
F. Management, Service Contracts, Cost Sharing Arrangements – No significant change
G. Nature of Relationships that Could Affect Operations – No significant change
H. Amount Deducted from Value of an Investment in Upstream Entity – Not applicable
I. Investment in an SCA that exceeds 10% of Admitted Assets – Not applicable
J. Impairment Writedowns related to Investments in SCA entities – Not applicable
K. Investment in Foreign Insurance Subsidiaries – Not applicable
L. Investment in Downstream Noninsurance Holding Company – Not applicable
M. All SCA Investments (Except 8bi Entities) – Not applicable
N. Investment in Insurance SCA Entities Utilizing Permitted or Prescribed Practices – Not applicable
11. Debt – Not applicable
12. Retirement Plans, Deferred Compensation, Postemployment Benefits and Compensated Absences and Other Postretirement Benefit Plans – No significant change
13. Capital and Surplus, Dividend Restrictions and Quasi-Reorganizations
1. Shares authorized, issued and outstanding – No significant change
2. Preferred stock issues – Not applicable
3. Dividend restrictions – No significant change
4. The Company paid the following dividends to Cincinnati Financial Corporation:
Date Amount Type January 22, 2020 $ 100,000,000 Ordinary April 20, 2020 $ 125,000,000 Ordinary
6.6 STATEMENT AS OF SEPTEMBER 30, 2020 OF THE CINCINNATI INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
July 23, 2020 $ 100,000,000 Ordinary September 24, 2020 $ 100,000,000 Ordinary
5. Portion of profits that may be paid as ordinary dividends – No significant change
6. Surplus restrictions – Not applicable
7. Mutual Surplus Advances – Not applicable
8. Company Stock Held for Special Purposes – Not applicable
9. Changes in Special Surplus Funds – Not applicable
10. The portion of unassigned funds (surplus) represented or (reduced) by cumulative unrealized gains/(losses) are $2,088,960,457 offset by deferred tax of $438,681,696 for a net balance of $1,650,278,761.
11. Surplus Notes – Not applicable
12. Restatement of Quasi-Reorganization – Not applicable
13. Date of Quasi-Reorganization – Not applicable
14. Liabilities, Contingencies and Assessments – No significant change
15. Leases – No significant change
16. Information About Financial Instruments with Off-Balance Sheet Risk and Financial Instruments with Concentrations of Credit Risk – Not applicable
17. Sale, Transfer and Servicing of Financial Assets and Extinguishments of Liabilities – Not applicable
18. Gain or Loss to the Reporting Entity from Uninsured Plans and Uninsured Portion of Partially Insured Plans – Not applicable
19. Direct Written Premium/Produced by Managing General Agents/Third Party Administrators – Not applicable
20. Fair Value Measurements
A. Inputs Used for Assets and Liabilities Measured at Fair Value
1. Included in various investment related line items in the financial statements are certain financial instruments carried at fair value. Other financial instruments are periodically measured at fair value, such as when impaired, or, for certain fixed maturities and preferred stock, when carried at the lower of cost or market.
The fair value of an asset is the amount at which that asset could be bought or sold in a current transaction between willing parties, that is, other than in a forced or liquidation sale. The Company does not have any material liabilities carried at fair value.
The Company has categorized its financial instruments, based on the priority of the inputs to the valuation technique, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level that is significant to the fair value measurement of the instrument.
Financial assets that fall within Level 1 and Level 2 are priced according to observable data from identical or similar securities that have traded in the marketplace. Also within Level 2 are securities that are valued by outside services or brokers where the Company has evaluated the pricing methodology and determined that the inputs are observable. Financial assets that fall within Level 3 of the hierarchy are valued based upon unobservable market inputs. Pricing for each Level 3 security is based upon inputs that are market driven, including third-party reviews provided to the issuer or broker quotes. However, the Company places in the Level 3 hierarchy securities for which it is unable to obtain the pricing methodology or it could not consider the price provided as binding. Management ultimately determines the fair value for each Level 3 security that it considers to be the best exit price valuation.
The Company primarily bases fair value estimates for investments in equity and fixed-maturity securities on quoted market prices or on prices from a nationally recognized pricing vendor, an outside resource that supplies global securities pricing, dividend, corporate action and descriptive information to support fund pricing, securities operations, research and portfolio management. The Company obtains and reviews the pricing service’s valuation methodologies and related inputs and validates these prices by replicating a sample across each asset class using a discounted cash flow model. When a price is not available from these sources, as in the case of securities that are not publicly traded, the Company determines the fair value using various inputs including quotes from independent brokers. In these circumstances, the Company has generally obtained and evaluated two nonbinding quotes from brokers; its investment professionals determine the best estimate of fair value. The fair value of investments not priced by a pricing vendor is less than 1 percent of the fair value of the Company’s total investment portfolio.
6.7 STATEMENT AS OF SEPTEMBER 30, 2020 OF THE CINCINNATI INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
Financial instruments are categorized based upon the following characteristics or inputs to the valuation techniques:
Level 1—Financial assets and liabilities for which inputs are observable and are obtained from reliable quoted prices for identical assets or liabilities in active markets. This is the most reliable fair value measurement and includes, for example, active exchange-traded equity securities.
Level 2 – Financial assets and liabilities for which values are based on quoted prices in markets that are not active or for which values are based on similar assets and liabilities that are actively traded. This also includes pricing models for which the inputs are corroborated by market data.
The technique used for the Level 2 fixed-maturity securities, including surplus notes which are included in other invested assets, is the application of market based modeling. The inputs used for all classes of fixed-maturity securities in the table below include relevant market information by asset class, trade activity of like securities, marketplace quotes, benchmark yields, spreads off benchmark yields, interest rates, U.S. Treasury or swap curves, yield to maturity and economic events. Specific to commercial mortgage-backed securities, key inputs also include prepayment and default projections based on past performance of the underlying collateral and current market data. Level 2 fixed- maturity securities are primarily priced by a nationally recognized pricing vendor.
The Level 2 preferred equities technique used is the application of market based modeling. The inputs used, similar to those used by the pricing vendor for our fixed-maturity securities, include relevant market information, trade activity of like securities, yield to maturity, corporate action notices and economic events. All of the Level 2 preferred equities are priced by a nationally recognized pricing vendor.
Level 3—Financial assets and liabilities for which values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Level 3 inputs include the following:
Quotes from brokers or other external sources that are not considered binding;
Quotes from brokers or other external sources where it cannot be determined that market participants would in fact transact for the asset or liability at the quoted price; or
Quotes from brokers or other external sources where the inputs are not deemed observable.
The following table presents the Company’s assets measured and reported at fair value by level within the fair value hierarchy as of September 30, 2020:
Assets at Fair Value: Net Asset Value (NAV) Included in Level 1 Level 2 Level 3 Total Level 2 Bonds $ 0 $ 106,596,313 $ 0 $ 106,596,313 $ 0 Preferred Stock 0 153,243,977 0 153,243,977 0 Common Stock 3,926,572,347 0 0 3,926,572,347 0 Total $ 3,926,572,347 $ 259,840,290 $ 0 $ 4,186,412,637 $ 0
2. Fair Value Measurements in Level 3 of the Fair Value Hierarchy – Not applicable
3. Transfers between levels are assumed to occur at the beginning of the period.
4. Inputs and Techniques Used for Level 2 and Level 3 Fair Values – See narrative in Note 20A1.
B. Other Fair Value Disclosures – Not applicable
C. Fair Values for all Financial Instruments by Level
Not Net Asset Practicable Value (NAV) Type of Financial Aggregate Fair (Carrying Included in Instrument Value Admitted Assets Level 1 Level 2 Level 3 Value) Level 2 Bonds $ 6,837,753,033 $ 6,350,770,678 $ 69,446,928 $ 6,768,266,105 $ 40,000 $ 0 $ 0 Preferred Stock 261,863,417 255,307,978 0 261,863,417 0 0 0 Common Stock 3,926,572,347 3,926,572,347 3,926,572,347 0 0 0 0 Other Invested Assets (Surplus Notes) 14,104,021 13,330,327 0 14,104,021 0 0 0
D. Reasons Not Practical to Estimate Fair Values – Not applicable
21. Other Items
A. Unusual or Infrequent Items
As a result of the 2019 novel coronavirus pandemic, various state jurisdictions requested property and casualty insurance carriers make mandatory or voluntary relief payments to their policyholders of certain business lines. In response, the Company incurred an aggregate of $15,623,891 in Covid-19 relief payments across their personal auto line policyholders. The Company utilized the limited-time exception accounting guidance under NAIC SAP INT 20-08 for property and casualty lines
6.8 STATEMENT AS OF SEPTEMBER 30, 2020 OF THE CINCINNATI INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
of business in which the Company filed a manual rate filing and disclosed to the jurisdictions where policies were written our intention to report Covid-19 relief payments to policyholders as expenses. Therefore, these payments were reported as expense through Line 4, Other underwriting expenses incurred, of the Statement of Income. See Note 22 for more information regarding the pandemic.
B. Troubled Debt Restructuring – Not applicable
C. Other Disclosures – No significant change
D. Business Interruption Insurance Recoveries – Not applicable
E. State Transferable and Non-Transferable Tax Credits – Not applicable
F. Subprime-Mortgage-Related Risk Exposure – No significant change
G. Insurance-Linked Securities (ILS) Contracts – No significant change
22. Subsequent Events
The Company has considered subsequent events through November 11, 2020, the date of issuance of these statutory financial statements. The World Health Organization declared the 2019 novel coronavirus (SARS-CoV-2 or COVID-19) outbreak a Public Health Emergency of International Concern on January 30, 2020, and a pandemic on March 11, 2020. The pandemic outbreak has caused an economic downturn on a global scale and uncertainty surrounding future government and private company restrictions as many businesses resume operations. The pandemic, and unprecedented actions taken to contain the virus, has also continued to cause significant market disruption and volatility. Through the first nine months of 2020, the Company estimated that pandemic-related incurred losses and expenses totaled $53.5 million. The Company continues to monitor the impact of the pandemic as it unfolds. The Company cannot predict the impact the pandemic will have on its future consolidated financial position, cash flows or results of operations, however the impact could be material.
23. Reinsurance – No significant change
24. Retrospectively Rated Contracts & Contracts Subject to Redetermination – Not applicable
25. Changes in Incurred Losses and Loss Adjustment Expense
Reserves as of December 31, 2019 were $5,198,504,877. As of September 30, 2020, $1,225,017,108 has been paid for incurred losses and loss adjustment expenses attributable to insured events of prior years. Reserves remaining for prior years are now $3,889,661,314 as a result of re-estimation of unpaid claims and claim adjustment expenses principally on commercial casualty lines of insurance. Therefore, there has been $83,826,455 of favorable prior-year development since December 31, 2019 to September 30, 2020. The decrease is generally the result of ongoing analysis of recent loss development trends. Original estimates are increased or decreased, as additional information becomes known regarding individual claims. Because the Company does not write retrospectively rated policies, prior-year development does not affect premium adjustments.
There were no changes in methodologies and assumptions used in calculating the reserve for loss and loss adjustment expenses at September 30, 2020.
26. Intercompany Pooling Arrangements – Not applicable
27. Structured Settlements – No significant change
28. Health Care Receivables – Not applicable
29. Participating Policies – Not applicable
30. Premium Deficiency Reserves – No significant change
31. High Deductibles – No significant change
32. Discounting of Liabilities for Unpaid Losses or Unpaid Loss Adjustment Expenses – No significant change
33. Asbestos and Environmental Reserves – No significant change
34. Subscriber Savings Accounts – Not applicable
35. Multiple Peril Crop Insurance – Not applicable
36. Financial Guaranty Insurance – Not applicable
37. Other – No significant change
6.9 STATEMENT AS OF SEPTEMBER 30, 2020 OF THE THE CINCINNATI INSURANCE COMPANY GENERAL INTERROGATORIES
PART 1 - COMMON INTERROGATORIES
GENERAL
1.1 Did the reporting entity experience any material transactions requiring the filing of Disclosure of Material Transactions with the State of Domicile, as required by the Model Act? Yes [ ] No [ X ]
1.2 If yes, has the report been filed with the domiciliary state? Yes [ ] No [ ]
2.1 Has any change been made during the year of this statement in the charter, by-laws, articles of incorporation, or deed of settlement of the reporting entity? Yes [ ] No [ X ]
2.2 If yes, date of change:
3.1 Is the reporting entity a member of an Insurance Holding Company System consisting of two or more affiliated persons, one or more of which is an insurer? Yes [ X ] No [ ] If yes, complete Schedule Y, Parts 1 and 1A.
3.2 Have there been any substantial changes in the organizational chart since the prior quarter end? Yes [ ] No [ X ]
3.3 If the response to 3.2 is yes, provide a brief description of those changes.
3.4 Is the reporting entity publicly traded or a member of a publicly traded group? Yes [ X ] No [ ]
3.5 If the response to 3.4 is yes, provide the CIK (Central Index Key) code issued by the SEC for the entity/group. 0000020286
4.1 Has the reporting entity been a party to a merger or consolidation during the period covered by this statement? Yes [ ] No [ X ] If yes, complete and file the merger history data file with the NAIC.
4.2 If yes, provide the name of the entity, NAIC Company Code, and state of domicile (use two letter state abbreviation) for any entity that has ceased to exist as a result of the merger or consolidation.
1 2 3 Name of Entity NAIC Company Code State of Domicile
5. If the reporting entity is subject to a management agreement, including third-party administrator(s), managing general agent(s), attorney- in-fact, or similar agreement, have there been any significant changes regarding the terms of the agreement or principals involved? Yes [ ] No [ X ] N/A [ ] If yes, attach an explanation.
6.1 State as of what date the latest financial examination of the reporting entity was made or is being made. 12/31/2014
6.2 State the as of date that the latest financial examination report became available from either the state of domicile or the reporting entity. This date should be the date of the examined balance sheet and not the date the report was completed or released. 12/31/2014
6.3 State as of what date the latest financial examination report became available to other states or the public from either the state of domicile or the reporting entity. This is the release date or completion date of the examination report and not the date of the examination (balance sheet date). 10/05/2015
6.4 By what department or departments? Ohio 6.5 Have all financial statement adjustments within the latest financial examination report been accounted for in a subsequent financial statement filed with Departments? Yes [ X ] No [ ] N/A [ ]
6.6 Have all of the recommendations within the latest financial examination report been complied with? Yes [ X ] No [ ] N/A [ ]
7.1 Has this reporting entity had any Certificates of Authority, licenses or registrations (including corporate registration, if applicable) suspended or revoked by any governmental entity during the reporting period? Yes [ ] No [ X ]
7.2 If yes, give full information:
8.1 Is the company a subsidiary of a bank holding company regulated by the Federal Reserve Board? Yes [ ] No [ X ]
8.2 If response to 8.1 is yes, please identify the name of the bank holding company.
8.3 Is the company affiliated with one or more banks, thrifts or securities firms? Yes [ ] No [ X ]
8.4 If response to 8.3 is yes, please provide below the names and location (city and state of the main office) of any affiliates regulated by a federal regulatory services agency [i.e. the Federal Reserve Board (FRB), the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC) and the Securities Exchange Commission (SEC)] and identify the affiliate's primary federal regulator.
1 2 3 4 5 6 Affiliate Name Location (City, State) FRB OCC FDIC SEC
7 STATEMENT AS OF SEPTEMBER 30, 2020 OF THE THE CINCINNATI INSURANCE COMPANY GENERAL INTERROGATORIES
9.1 Are the senior officers (principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions) of the reporting entity subject to a code of ethics, which includes the following standards ? Yes [ X ] No [ ] (a) Honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships; (b) Full, fair, accurate, timely and understandable disclosure in the periodic reports required to be filed by the reporting entity; (c) Compliance with applicable governmental laws, rules and regulations; (d) The prompt internal reporting of violations to an appropriate person or persons identified in the code; and (e) Accountability for adherence to the code. 9.11 If the response to 9.1 is No, please explain:
9.2 Has the code of ethics for senior managers been amended ? Yes [ ] No [ X ] 9.21 If the response to 9.2 is Yes, provide information related to amendment(s).
9.3 Have any provisions of the code of ethics been waived for any of the specified officers ? Yes [ ] No [ X ] 9.31 If the response to 9.3 is Yes, provide the nature of any waiver(s).
FINANCIAL
10.1 Does the reporting entity report any amounts due from parent, subsidiaries or affiliates on Page 2 of this statement? Yes [ X ] No [ ] 10.2 If yes, indicate any amounts receivable from parent included in the Page 2 amount: $ 23,803,983
INVESTMENT
11.1 Were any of the stocks, bonds, or other assets of the reporting entity loaned, placed under option agreement, or otherwise made available for use by another person? (Exclude securities under securities lending agreements.) Yes [ ] No [ X ] 11.2 If yes, give full and complete information relating thereto:
12. Amount of real estate and mortgages held in other invested assets in Schedule BA: $ 11,484,115 13. Amount of real estate and mortgages held in short-term investments: $ 14.1 Does the reporting entity have any investments in parent, subsidiaries and affiliates? Yes [ X ] No [ ] 14.2 If yes, please complete the following: 1 2 Prior Year-End Current Quarter Book/Adjusted Book/Adjusted Carrying Value Carrying Value 14.21 Bonds $ $ 14.22 Preferred Stock $ $ 14.23 Common Stock $ 1,277,723,143 $ 1,277,948,256 14.24 Short-Term Investments $ $ 14.25 Mortgage Loans on Real Estate $ $ 14.26 All Other $ $ 14.27 Total Investment in Parent, Subsidiaries and Affiliates (Subtotal Lines 14.21 to 14.26) $ 1,277,723,143 $ 1,277,948,256 14.28 Total Investment in Parent included in Lines 14.21 to 14.26 above $ $
15.1 Has the reporting entity entered into any hedging transactions reported on Schedule DB? Yes [ ] No [ X ] 15.2 If yes, has a comprehensive description of the hedging program been made available to the domiciliary state? Yes [ ] No [ ] N/A [ ] If no, attach a description with this statement.
16. For the reporting entity’s security lending program, state the amount of the following as of the current statement date: 16.1 Total fair value of reinvested collateral assets reported on Schedule DL, Parts 1 and 2. $ 16.2 Total book adjusted/carrying value of reinvested collateral assets reported on Schedule DL, Parts 1 and 2 $ 16.3 Total payable for securities lending reported on the liability page. $
7.1 STATEMENT AS OF SEPTEMBER 30, 2020 OF THE THE CINCINNATI INSURANCE COMPANY GENERAL INTERROGATORIES
17. Excluding items in Schedule E - Part 3 - Special Deposits , real estate, mortgage loans and investments held physically in the reporting entity’s offices, vaults or safety deposit boxes, were all stocks, bonds and other securities, owned throughout the current year held pursuant to a custodial agreement with a qualified bank or trust company in accordance with Section 1, III - General Examination Considerations, F. Outsourcing of Critical Functions, Custodial or Safekeeping Agreements of the NAIC Financial Condition Examiners Handbook? Yes [ X ] No [ ] 17.1 For all agreements that comply with the requirements of the NAIC Financial Condition Examiners Handbook, complete the following:
1 2 Name of Custodian(s) Custodian Address FIFTH THIRD BANK FIFTH THIRD CENTER CINCINNATI, OHIO 45263
17.2 For all agreements that do not comply with the requirements of the NAIC Financial Condition Examiners Handbook, provide the name, location and a complete explanation: 1 2 3 Name(s) Location(s) Complete Explanation(s)
17.3 Have there been any changes, including name changes, in the custodian(s) identified in 17.1 during the current quarter? Yes [ ] No [ X ] 17.4 If yes, give full information relating thereto:
1 2 3 4 Old Custodian New Custodian Date of Change Reason
17.5 Investment management – Identify all investment advisors, investment managers, broker/dealers, including individuals that have the authority to make investment decisions on behalf of the reporting entity. For assets that are managed internally by employees of the reporting entity, note as such. ["…that have access to the investment accounts"; "…handle securities"] 1 2 Name of Firm or Individual Affiliation Securian Asset Management, Inc U
17.5097 For those firms/individuals listed in the table for Question 17.5, do any firms/individuals unaffiliated with the reporting entity (i.e. designated with a "U") manage more than 10% of the reporting entity’s invested assets? Yes [ ] No [ X ]
17.5098 For firms/individuals unaffiliated with the reporting entity (i.e. designated with a "U") listed in the table for Question 17.5, does the total assets under management aggregate to more than 50% of the reporting entity’s invested assets? Yes [ ] No [ X ]
17.6 For those firms or individuals listed in the table for 17.5 with an affiliation code of "A" (affiliated) or "U" (unaffiliated), provide the information for the table below. 1 2 3 4 5 Investment Management Central Registration Agreement Depository Number Name of Firm or Individual Legal Entity Identifier (LEI) Registered With (IMA) Filed Securities and Exchange 109905 Securian Asset Management, Inc 5URRAMPU5ELNW8AQJB87 Commission NO
18.1 Have all the filing requirements of the Purposes and Procedures Manual of the NAIC Investment Analysis Office been followed? Yes [ ] No [ X ] 18.2 If no, list exceptions: For securities not filed with the SVO, please see the attached on page 7.2.1
19. By self-designating 5GI securities, the reporting entity is certifying the following elements for each self-designated 5GI security: a. Documentation necessary to permit a full credit analysis of the security does not exist or an NAIC CRP credit rating for an FE or PL security is not available. b. Issuer or obligor is current on all contracted interest and principal payments. c. The insurer has an actual expectation of ultimate payment of all contracted interest and principal. Has the reporting entity self-designated 5GI securities? Yes [ ] No [ X ]
20. By self-designating PLGI securities, the reporting entity is certifying the following elements of each self-designated PLGI security: a. The security was purchased prior to January 1, 2018. b. The reporting entity is holding capital commensurate with the NAIC Designation reported for the security. c. The NAIC Designation was derived from the credit rating assigned by an NAIC CRP in its legal capacity as a NRSRO which is shown on a current private letter rating held by the insurer and available for examination by state insurance regulators. d. The reporting entity is not permitted to share this credit rating of the PL security with the SVO. Has the reporting entity self-designated PLGI securities? Yes [ ] No [ X ]
21. By assigning FE to a Schedule BA non-registered private fund, the reporting entity is certifying the following elements of each self-designated FE fund: a. The shares were purchased prior to January 1, 2019. b. The reporting entity is holding capital commensurate with the NAIC Designation reported for the security. c. The security had a public credit rating(s) with annual surveillance assigned by an NAIC CRP in its legal capacity as an NRSRO prior to January 1, 2019. d. The fund only or predominantly holds bonds in its portfolio. e. The current reported NAIC Designation was derived from the public credit rating(s) with annual surveillance assigned by an NAIC CRP in its legal capacity as an NRSRO. f. The public credit rating(s) with annual surveillance assigned by an NAIC CRP has not lapsed. Has the reporting entity assigned FE to Schedule BA non-registered private funds that complied with the above criteria? Yes [ ] No [ X ]
7.2 CINCINNATI INSURANCE COMPANY
As of 9/30/20
Book Adjusted Cusip Description Par Carry Value SVO Rating 80889EBC0 SCIOTO CNTY OHIO REGL WTR DIST NO 1 AUTH WTR SYS R 1,175,000.00 1,175,000.00 5GI 43739YAB9 HOMEBANCORP INC 5,000,000.00 5,000,000.00 5GI 19910RAD1 COLUMBUS-FRANKLIN CNTY OHIO FIN AUTH PUB INFRASTRU 4,785,000.00 4,488,856.35 5GI 874704EC9 TALLMADGE OHIO 100,000.00 100,000.00 5GI 813903AB7 SECURITY FEDERAL CORPORATION 2,000,000.00 1,920,000.00 5GI 837540AA1 SOUTH DAKOTA BANCSHARES, INC. 3,000,000.00 2,925,000.00 5GI 661159AA1 NORTH MILL EQUIPMENT FINANCE LLC 5,000,000.00 5,000,000.00 5GI 066849AC4 BAR HARBOR BANKSHARES 3,000,000.00 3,000,000.00 5GI 32115DAB2 FIRST NBC BK HLDG CO 4,000,000.00 40,000.00 6* 9941276J2 CAPE ANALYTICS INC SERIES B PREFERRED 268,774.00 1,000,000.54 6* 63010MAA5 NANO FINANCIAL HOLDINGS, INC. 3,000,000.00 3,000,000.00 6*
31,328,774.00 27,648,856.89 STATEMENT AS OF SEPTEMBER 30, 2020 OF THE THE CINCINNATI INSURANCE COMPANY GENERAL INTERROGATORIES
PART 2 - PROPERTY & CASUALTY INTERROGATORIES
1. If the reporting entity is a member of a pooling arrangement, did the agreement or the reporting entity’s participation change? Yes [ ] No [ X ] N/A [ ] If yes, attach an explanation.
2. Has the reporting entity reinsured any risk with any other reporting entity and agreed to release such entity from liability, in whole or in part, from any loss that may occur on the risk, or portion thereof, reinsured? Yes [ ] No [ X ] If yes, attach an explanation.
3.1 Have any of the reporting entity’s primary reinsurance contracts been canceled? Yes [ ] No [ X ]
3.2 If yes, give full and complete information thereto.
4.1 Are any of the liabilities for unpaid losses and loss adjustment expenses other than certain workers’ compensation tabular reserves (see Annual Statement Instructions pertaining to disclosure of discounting for definition of “ tabular reserves” ) discounted at a rate of interest greater than zero? Yes [ ] No [ X ]
4.2 If yes, complete the following schedule:
TOTAL DISCOUNT DISCOUNT TAKEN DURING PERIOD 1 2 3 4 5 6 7 8 9 10 11 Maximum Discount Unpaid Unpaid Unpaid Unpaid Line of Business Interest Rate Losses LAE IBNR TOTAL Losses LAE IBNR TOTAL TOTAL
5. Operating Percentages:
5.1 A&H loss percent %
5.2 A&H cost containment percent %
5.3 A&H expense percent excluding cost containment expenses %
6.1 Do you act as a custodian for health savings accounts? Yes [ ] No [ X ]
6.2 If yes, please provide the amount of custodial funds held as of the reporting date $
6.3 Do you act as an administrator for health savings accounts? Yes [ ] No [ X ]
6.4 If yes, please provide the balance of the funds administered as of the reporting date $
7. Is the reporting entity licensed or chartered, registered, qualified, eligible or writing business in at least two states? Yes [ X ] No [ ]
7.1 If no, does the reporting entity assume reinsurance business that covers risks residing in at least one state other than the state of domicile of the reporting entity? Yes [ ] No [ ]
8 STATEMENT AS OF SEPTEMBER 30, 2020 OF THE THE CINCINNATI INSURANCE COMPANY SCHEDULE F - CEDED REINSURANCE Showing All New Reinsurers - Current Year to Date 1 2 3 4 5 6 7 Effective Certified Date of NAIC Reinsurer Certified Company ID Domiciliary Rating Reinsurer Code Number Name of Reinsurer Jurisdiction Type of Reinsurer (1 through 6) Rating 27847 95-2769232 Insurance Company of the West CA Authorized 00000 AA-1120171 Lloyd's Syndicate 1856 GBR Authorized 00000 AA-0000000 Lloyd's Syndicate 2689 GBR Authorized 00000 AA-0000000 Lloyd's Syndicate 4242 GBR Authorized 00000 AA-3190770 Chubb Tempest Reinsurance Ltd. BMU Unauthorized 00000 AA-3191400 Convex Re Limited BMU Unauthorized 00000 AA-1120191 Convex Insurance UK Limited GBR Unauthorized 00000 AA-1120175 Fidelis Underwriting Limited GBR Unauthorized 00000 AA-5420050 Korean Reinsurance Company KOR Unauthorized 00000 AA-3190875 Hiscox Insurance Company (Bermuda) Limited BMU Unauthorized
9 STATEMENT AS OF SEPTEMBER 30, 2020 OF THE THE CINCINNATI INSURANCE COMPANY SCHEDULE T - EXHIBIT OF PREMIUMS WRITTEN Current Year to Date - Allocated by States and Territories 1 Direct Premiums Written Direct Losses Paid (Deducting Salvage) Direct Losses Unpaid Active 2 3 4 5 6 7 Status Current Year Prior Year Current Year Prior Year Current Year Prior Year States, etc. (a) To Date To Date To Date To Date To Date To Date 1. Alabama AL L 110,556,553 110,916,207 46,092,375 63,847,661 87,522,189 74,263,699 2. Alaska AK L 82,938 79,716 25,122 19,834 3. Arizona AZ L 46,929,758 46,030,047 18,443,146 25,599,131 43,134,445 45,873,413 4. Arkansas AR L 49,410,176 50,966,930 27,807,474 20,291,298 40,219,061 30,986,859 5. California CA L 51,715,720 44,859,866 15,995,300 45,449,845 33,066,660 15,512,922 6. Colorado CO L 27,560,916 24,297,084 10,660,164 11,535,012 27,719,040 24,003,652 7. Connecticut CT L 46,593,225 40,585,806 20,383,426 14,838,173 41,385,045 27,910,558 8. Delaware DE L 10,301,076 9,919,030 2,964,704 5,436,622 13,588,691 12,410,867 9. District of Columbia DC L 3,861,035 3,909,908 331,907 698,757 2,185,305 1,851,059 10. Florida FL L 58,104,441 49,450,622 20,910,994 20,777,039 74,962,970 66,694,097 11. Georgia GA L 186,198,576 192,066,480 96,539,358 131,600,720 147,709,845 148,292,501 12. Hawaii HI L 134,455 276,947 18,823 8,125 135,378 113,638 13. Idaho ID L 30,855,813 29,365,513 11,248,044 13,061,570 23,955,712 22,390,059 14. Illinois IL L 165,009,481 166,190,349 75,634,715 82,280,189 211,745,173 194,375,540 15. Indiana IN L 157,479,594 161,502,774 62,922,044 62,695,543 147,515,313 157,742,544 16. Iowa IA L 47,160,819 49,183,242 62,274,698 25,909,046 150,694,849 65,528,159 17. Kansas KS L 37,690,088 35,698,425 10,186,621 19,267,088 28,138,936 24,050,231 18. Kentucky KY L 108,073,153 112,636,797 37,934,974 54,284,214 98,024,478 94,146,623 19. Louisiana LA L 1,778,685 2,107,332 694,811 558,009 4,717,055 2,181,127 20. Maine ME L 486,175 216,081 62,459 (59,315) 300,816 142,928 21. Maryland MD L 68,018,301 67,741,560 44,646,681 42,132,516 74,030,932 73,036,920 22. Massachusetts MA L 14,531,060 6,564,182 2,133,039 1,075,579 4,393,084 1,685,297 23. Michigan MI L 133,901,898 138,702,076 62,762,149 68,536,516 139,613,328 143,254,411 24. Minnesota MN L 84,079,294 89,211,211 39,348,488 50,833,499 100,348,135 81,920,460 25. Mississippi MS L 1,365,641 1,509,816 3,505,597 1,297,435 2,240,425 2,732,966 26. Missouri MO L 97,256,242 93,464,514 48,692,392 41,705,682 92,298,279 95,977,206 27. Montana MT L 44,904,909 41,543,918 21,893,832 16,976,760 54,352,449 53,891,400 28. Nebraska NE L 24,919,350 23,355,072 8,372,599 10,157,561 35,919,891 32,077,990 29. Nevada NV L 1,963,562 1,483,303 798,195 1,151,343 1,648,918 790,950 30. New Hampshire NH L 11,583,996 10,429,224 2,717,465 4,283,526 11,149,447 8,393,330 31. New Jersey NJ L 20,099,287 12,349,915 4,068,686 2,674,151 13,120,441 10,142,563 32. New Mexico NM L 16,218,399 15,209,658 4,651,023 9,123,632 26,975,291 22,414,005 33. New York NY L 157,890,127 125,632,942 51,471,210 58,254,802 129,636,292 99,001,251 34. North Carolina NC L 181,830,869 173,720,803 73,117,561 100,033,148 136,951,543 121,450,035 35. North Dakota ND L 11,800,585 11,578,702 7,306,621 5,018,710 14,923,368 13,315,891 36. Ohio OH L 520,997,643 516,265,047 211,215,088 293,244,558 438,885,965 456,445,670 37. Oklahoma OK L 2,008,078 1,493,593 399,039 92,446 1,176,020 979,823 38. Oregon OR L 40,656,774 36,107,756 16,827,291 15,432,440 52,284,068 24,599,393 39. Pennsylvania PA L 143,505,691 144,451,522 117,695,151 89,687,410 242,980,672 197,377,231 40. Rhode Island RI L 151,104 126,159 69,451 22,487 169,203 218,437 41. South Carolina SC L 44,350,833 46,944,746 20,802,863 22,930,140 53,103,211 48,759,406 42. South Dakota SD L 8,458,485 8,443,602 5,041,284 9,585,466 17,238,734 16,365,842 43. Tennessee TN L 124,176,127 124,328,035 112,051,632 42,850,889 141,833,026 106,433,297 44. Texas TX L 101,123,810 85,076,957 48,920,924 38,201,602 109,533,099 100,276,180 45. Utah UT L 46,091,804 43,763,919 18,992,729 18,395,818 44,808,342 39,531,125 46. Vermont VT L 15,884,882 15,470,819 7,825,727 7,616,949 14,188,515 19,001,141 47. Virginia VA L 106,513,229 101,115,534 45,126,914 46,255,811 107,137,716 105,784,634 48. Washington WA L 27,348,295 24,983,512 7,637,803 4,700,296 21,390,142 14,592,871 49. West Virginia WV L 18,873,820 19,378,429 6,746,938 6,774,672 16,217,222 13,837,244 50. Wisconsin WI L 83,327,493 84,648,398 30,080,941 46,795,534 115,439,293 120,908,574 51. Wyoming WY L 5,958,600 5,741,978 934,293 1,850,658 5,577,850 5,741,568 52. American Samoa AS N 53. Guam GU N 54. Puerto Rico PR L 97 173 55. U.S. Virgin Islands VI N 56. Northern Mariana Islands MP N 57. Canada CAN N 58. Aggregate Other Alien OT XXX 59. Totals XXX 3,299,772,865 3,201,096,057 1,546,959,644 1,655,770,765 3,396,311,079 3,039,427,593 DETAILS OF WRITE-INS 58001. XXX 58002. XXX 58003. XXX 58998. Summary of remaining write-ins for Line 58 from overflow page XXX 58999. Totals (Lines 58001 through 58003 plus 58998)(Line 58 above) XXX (a) Active Status Counts: L - Licensed or Chartered - Licensed Insurance carrier or domiciled RRG 52 R - Registered - Non-domiciled RRGs E - Eligible - Reporting entities eligible or approved to write surplus lines in the state (other Q - Qualified - Qualified or accredited reinsurer than their state of domicile - see DSLI) N - None of the above - Not allowed to write D - Domestic Surplus Lines Insurer (DSLI) - Reporting entities authorized to write surplus business in the state 5 lines in the state of domicile
10 STATEMENT AS OF SEPTEMBER 30, 2020 OF THE THE CINCINNATI INSURANCE COMPANY
11 STATEMENT AS OF SEPTEMBER 30, 2020 OF THE THE CINCINNATI INSURANCE COMPANY SCHEDULE Y PART 1A - DETAIL OF INSURANCE HOLDING COMPANY SYSTEM 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Type If of Control Control (Ownership, is Is an Name of Securities Relation- Board, Owner- SCA Exchange Domi- ship Management, ship Filing NAIC if Publicly Traded Names of ciliary to Attorney-in-Fact, Provide Re- Group Company ID Federal (U.S. or Parent, Subsidiaries Loca- Reporting Directly Controlled by Influence, Percen- Ultimate Controlling quired? Code Group Name Code Number RSSD CIK International) Or Affiliates tion Entity (Name of Entity/Person) Other) tage Entity(ies)/Person(s) (Y/N) * 0244 CINCINNATI INS GRP 00000 31-0746871 0000020286 NASDAQ CINCINNATI FIANCNIAL CORPORATION OH UDP CINCINNATI FINANCIAL CORPORATION Board of Directors 0.000 N 0244 CINCINNATI INS GRP 10677 31-0542366 0001279885 THE CINCINNATI INSURANCE COMPANY OH RE CINCINNATI FINANCIAL CORPORATION Ownership 100.000 CINCINNATI FINANCIAL CORPORATION N 0244 CINCINNATI INS GRP 76236 31-1213778 0001279887 THE CINCINNATI LIFE INSURANCE COMPANY OH DS THE CINCINNATI INSURANCE COMPANY Ownership 100.000 CINCINNATI FINANCIAL CORPORATION N 0244 CINCINNATI INS GRP 28665 31-0826946 0001279888 THE CINCINNATI CASUALTY COMPANY OH DS THE CINCINNATI INSURANCE COMPANY Ownership 100.000 CINCINNATI FINANCIAL CORPORATION N 0244 CINCINNATI INS GRP 23280 31-1241230 0001279886 THE CINCINNATI INDEMNITY COMPANY OH DS THE CINCINNATI INSURANCE COMPANY Ownership 100.000 CINCINNATI FINANCIAL CORPORATION N THE CINCINNATI SPECIALTY UNDERWRITERS 0244 CINCINNATI INS GRP 13037 65-1316588 0001426763 INSURANCE COMPANY DE DS THE CINCINNATI INSURANCE COMPANY Ownership 100.000 CINCINNATI FINANCIAL CORPORATION N 0244 CINCINNATI INS GRP 00000 31-0790388 CFC INVESTMENT COMPANY OH NIA CINCINNATI FINANCIAL CORPORATION Ownership 100.000 CINCINNATI FINANCIAL CORPORATION N 0244 CINCINNATI INS GRP 00000 11-3823180 0001534469 CSU PRODUCER RESOURCES, INC OH NIA CINCINNATI FINANCIAL CORPORATION Ownership 100.000 CINCINNATI FINANCIAL CORPORATION N 0244 CINCINNATI INS GRP 00000 81-1908205 CLIC BP INVESTMENTS B, LLC OH DS THE CINCINNATI LIFE INSURANCE COMPANY Ownership 100.000 CINCINNATI FINANCIAL CORPORATION N 0244 CINCINNATI INS GRP 00000 81-3640769 CLIC DS INVESTMENTS I, LLC OH DS THE CINCINNATI LIFE INSURANCE COMPANY Ownership 100.000 CINCINNATI FINANCIAL CORPORATION N 0244 CINCINNATI INS GRP 00000 81-4633687 CLIC BP INVESTMENTS H, LLC OH DS THE CINCINNATI LIFE INSURANCE COMPANY Ownership 100.000 CINCINNATI FINANCIAL CORPORATION N 0244 CINCINNATI INS GRP 00000 82-1587731 CLIC WDS INVESTMENTS I, LLC OH DS THE CINCINNATI LIFE INSURANCE COMPANY Ownership 100.000 CINCINNATI FINANCIAL CORPORATION N 0244 CINCINNATI INS GRP 00000 82-3254447 CLIC UPTOWN INVESTMENTS I, LLC OH DS THE CINCINNATI LIFE INSURANCE COMPANY Ownership 100.000 CINCINNATI FINANCIAL CORPORATION N 0244 CINCINNATI INS GRP 00000 82-5173506 CLIC DISTRICT INVESTMENTS I, LLC OH DS THE CINCINNATI LIFE INSURANCE COMPANY Ownership 100.000 CINCINNATI FINANCIAL CORPORATION N 0244 CINCINNATI INS GRP 00000 83-1627569 CIC UPTOWN INVESTMENTS I, LLC OH DS THE CINCINNATI INSURANCE COMPANY Ownership 100.000 CINCINNATI FINANCIAL CORPORATION N 0244 CINCINNATI INS GRP 00000 98-1489371 CINCINNATI GLOBAL UNDERWRITING, INC GBR NIA CINCINNATI FINANCIAL CORPORATION Ownership 100.000 CINCINNATI FINANCIAL CORPORATION N CINCINNATI GLOBAL CINCINNATI GLOBAL 0244 CINCINNATI INS GRP 00000 DEDICATED NO 1 LIMITED GBR IA UNDERWRITING Ownership 100.000 CINCINNATI FINANCIAL CORPORATION N
12 CINCINNATI GLOBAL 0244 CINCINNATI INS GRP 00000 DEDICATED NO 2 LIMITED GBR IA CINCINNATI GLOBAL UNDERWRITING Ownership 100.000 CINCINNATI FINANCIAL CORPORATION N 0244 CINCINNATI INS GRP 00000 CINCINNATI GLOBAL DEDICATED NO 3 LIMITED GBR IA CINCINNATI GLOBAL UNDERWRITING Ownership 100.000 CINCINNATI FINANCIAL CORPORATION N CINCINNATI GLOBAL 0244 CINCINNATI INS GRP 00000 DEDICATED NO 4 LIMITED GBR IA CINCINNATI GLOBAL UNDERWRITING Ownership 100.000 CINCINNATI FINANCIAL CORPORATION N CINCINNATI GLOBAL 0244 CINCINNATI INS GRP 00000 DEDICATED NO 5 LIMITED GBR IA CINCINNATI GLOBAL UNDERWRITING Ownership 100.000 CINCINNATI FINANCIAL CORPORATION N CINCINNATI GLOBAL 0244 CINCINNATI INS GRP 00000 DEDICATED NO 6 LIMITED GBR IA CINCINNATI GLOBAL UNDERWRITING Ownership 100.000 CINCINNATI FINANCIAL CORPORATION N CINCINNATI GLOBAL 0244 CINCINNATI INS GRP 00000 UNDERWRITING AGENCY LIMITED GBR NIA CINCINNATI GLOBAL UNDERWRITING Ownership 100.000 CINCINNATI FINANCIAL CORPORATION N CINCINNATI GLOBAL UNDERWRITING SERVICES 0244 CINCINNATI INS GRP 00000 LIMITED GBR NIA CINCINNATI GLOBAL UNDERWRITING Ownership 100.000 CINCINNATI FINANCIAL CORPORATION N 0244 CINCINNATI INS GRP 00000 61-1936938 CIC DANAMONT INVESTMENTS I, LLC OH DS THE CINCINNATI INSURANCE COMPANY Ownership 100.000 CINCINNATI FINANCIAL CORPORATION N 0244 CINCINNATI INS GRP 00000 32-0613415 CIC ICON INVESTMENTS I, LLC OH DS THE CINCINNATI INSURANCE COMPANY Ownership 100.000 CINCINNATI FINANCIAL CORPORATION N
Asterisk Explanation STATEMENT AS OF SEPTEMBER 30, 2020 OF THE THE CINCINNATI INSURANCE COMPANY PART 1 - LOSS EXPERIENCE Current Year to Date 4 1 2 3 Prior Year to Date Direct Premiums Direct Losses Direct Loss Direct Loss Line of Business Earned Incurred Percentage Percentage 1. Fire 66,613,932 28,963,862 43.5 37.2 2. Allied Lines 65,083,415 80,786,278 124.1 96.1 3. Farmowners multiple peril 4. Homeowners multiple peril 471,165,760 373,841,936 79.3 75.4 5. Commercial multiple peril 795,685,766 546,338,147 68.7 61.5 6. Mortgage guaranty 8. Ocean marine 9. Inland marine 120,550,631 71,825,361 59.6 34.3 10. Financial guaranty 11.1 Medical professional liability - occurrence 20,412,748 10,256,030 50.2 96.7 11.2 Medical professional liability - claims-made 1,211,251 2,302,829 190.1 87.0 12. Earthquake 25,979,258 39,407 0.2 (0.1) 13. Group accident and health 14. Credit accident and health 15. Other accident and health 16. Workers’ compensation 57,910,108 32,974,654 56.9 53.6 17.1 Other liability - occurrence 422,798,694 189,936,409 44.9 38.4 17.2 Other liability - claims-made 112,261,128 26,060,034 23.2 42.9 17.3 Excess workers’ compensation 752,935 (114,692) (15.2) 18.1 Products liability - occurrence 47,035,901 12,970,916 27.6 20.9 18.2 Products liability - claims-made 145 19.1,19.2 Private passenger auto liability 249,742,562 121,278,276 48.6 54.7 19.3,19.4 Commercial auto liability 316,050,717 193,620,356 61.3 61.4 21. Auto physical damage 341,692,166 159,471,838 46.7 56.8 22. Aircraft (all perils) (82,078) 23. Fidelity 2,660,760 (801,668) (30.1) 10.3 24. Surety 47,138,869 1,391,952 3.0 2.4 26. Burglary and theft 11,128,341 4,401,851 39.6 19.2 27. Boiler and machinery 14,174,892 6,438,382 45.4 60.2 28. Credit 29. International 30. Warranty 31. Reinsurance - Nonproportional Assumed Property XXX XXX XXX XXX 32. Reinsurance - Nonproportional Assumed Liability XXX XXX XXX XXX 33. Reinsurance - Nonproportional Assumed Financial Lines XXX XXX XXX XXX 34. Aggregate write-ins for other lines of business 35. Totals 3,190,049,978 1,861,900,079 58.4 55.8 DETAILS OF WRITE-INS 3401. 3402. 3403. 3498. Summary of remaining write-ins for Line 34 from overflow page 3499. Totals (Lines 3401 through 3403 plus 3498)(Line 34 above)
PART 2 - DIRECT PREMIUMS WRITTEN 1 2 3 Current Prior Year Line of Business Current Quarter Year to Date Year to Date 1. Fire 24,053,272 69,057,168 66,763,762 2. Allied Lines 23,833,848 68,836,474 64,214,248 3. Farmowners multiple peril 4. Homeowners multiple peril 174,251,469 491,554,739 473,229,722 5. Commercial multiple peril 262,889,661 831,098,018 782,708,707 6. Mortgage guaranty 8. Ocean marine 9. Inland marine 35,131,507 111,296,937 131,762,303 10. Financial guaranty 11.1 Medical professional liability - occurrence 7,735,111 21,020,177 21,791,839 11.2 Medical professional liability - claims-made 663,043 1,618,397 1,282,953 12. Earthquake 8,901,904 25,942,851 27,218,604 13. Group accident and health 14. Credit accident and health 15. Other accident and health 16. Workers’ compensation 12,804,623 56,540,208 63,833,282 17.1 Other liability - occurrence 138,423,207 457,821,778 407,003,259 17.2 Other liability - claims-made 40,868,261 117,980,495 106,006,782 17.3 Excess workers’ compensation 663,051 973,528 18.1 Products liability - occurrence 14,729,074 48,236,901 49,585,357 18.2 Products liability - claims-made 317 19.1,19.2 Private passenger auto liability 83,423,579 245,519,073 266,797,996 19.3,19.4 Commercial auto liability 95,469,438 324,795,257 312,104,171 21. Auto physical damage 117,047,252 350,144,685 351,485,379 22. Aircraft (all perils) 23. Fidelity 760,080 2,714,353 2,882,298 24. Surety 15,450,431 47,584,964 47,417,791 26. Burglary and theft 4,087,036 12,502,400 10,426,631 27. Boiler and machinery 5,849,917 14,844,623 13,607,445 28. Credit 29. International 30. Warranty 31. Reinsurance - Nonproportional Assumed Property XXX XXX XXX 32. Reinsurance - Nonproportional Assumed Liability XXX XXX XXX 33. Reinsurance - Nonproportional Assumed Financial Lines XXX XXX XXX 34. Aggregate write-ins for other lines of business 35. Totals 1,066,372,713 3,299,772,865 3,201,096,057 DETAILS OF WRITE-INS 3401. 3402. 3403. 3498. Summary of remaining write-ins for Line 34 from overflow page 3499. Totals (Lines 3401 through 3403 plus 3498)(Line 34 above)
13 STATEMENT AS OF SEPTEMBER 30, 2020 OF THE THE CINCINNATI INSURANCE COMPANY PART 3 (000 omitted) LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES SCHEDULE 1 2 3 4 5 6 7 8 9 10 11 12 13 Prior Year-End Prior Year-End Q.S. Date Known Known Case Loss IBNR Loss and Prior Year-End 2020 Loss and Q.S. Date Known Case Loss and and LAE Reserves LAE Reserves Total Loss and Total Prior 2020 Loss and LAE Payments on Case Loss and LAE Reserves on Developed Developed LAE Reserve Prior Year- Year-End Loss LAE Payments on Claims Total 2020 Loss LAE Reserves on Claims Reported Total Q.S. Loss (Savings)/ (Savings)/ Developed Years in Which Prior Year-End End IBNR and LAE Claims Reported Unreported and LAE Claims Reported or Reopened Q.S. Date IBNR and LAE Deficiency Deficiency (Savings)/ Losses Known Case Loss Loss and LAE Reserves as of Prior as of Prior Payments and Open as of Subsequent to Loss and LAE Reserves (Cols.4+7 (Cols. 5+8+9 Deficiency Occurred and LAE Reserves Reserves (Cols. 1+2) Year-End Year-End (Cols. 4+5) Prior Year End Prior Year End Reserves (Cols.7+8+9) minus Col. 1) minus Col. 2) (Cols. 11+12) 1. 2017 + Prior 1,070,572 1,109,843 2,180,414 367,007 37,710 404,718 781,428 76,059 935,731 1,793,218 77,864 (60,343) 17,521 2. 2018 512,662 565,009 1,077,672 227,179 21,103 248,282 351,463 57,454 385,855 794,772 65,980 (100,597) (34,617) 3. Subtotals 2018 + Prior 1,583,234 1,674,852 3,258,086 594,187 58,813 653,000 1,132,891 133,513 1,321,586 2,587,990 143,844 (160,940) (17,096) 4. 2019 852,803 1,087,615 1,940,419 448,979 123,038 572,017 506,878 128,890 665,903 1,301,671 103,054 (169,784) (66,730) 5. Subtotals 2019 + Prior 2,436,037 2,762,467 5,198,505 1,043,166 181,851 1,225,017 1,639,769 262,403 1,987,489 3,889,661 246,898 (330,724) (83,826) 6. 2020 XXX XXX XXX XXX 958,591 958,591 XXX 707,186 1,156,896 1,864,081 XXX XXX XXX 7. Totals 2,436,037 2,762,467 5,198,505 1,043,166 1,140,442 2,183,608 1,639,769 969,589 3,144,385 5,753,743 246,898 (330,724) (83,826) 8. Prior Year-End Surplus Col. 11, Line 7 Col. 12, Line 7 Col. 13, Line 7 As Regards As % of Col. 1 As % of Col. 2 As % of Col. 3 Policyholders 5,619,676 Line 7 Line 7 Line 7 1. 10.1 2. (12.0) 3. (1.6) Col. 13, Line 7 As a % of Col. 1
14 Line 8 4. (1.5)
STATEMENT AS OF SEPTEMBER 30, 2020 OF THE THE CINCINNATI INSURANCE COMPANY SUPPLEMENTAL EXHIBITS AND SCHEDULES INTERROGATORIES
The following supplemental reports are required to be filed as part of your statement filing. However, in the event that your company does not transact the type of business for which the special report must be filed, your response of NO to the specific interrogatory will be accepted in lieu of filing a “NONE” report and a bar code will be printed below. If the supplement is required of your company but is not being filed for whatever reason enter SEE EXPLANATION and provide an explanation following the interrogatory questions.
Response
1. Will the Trusteed Surplus Statement be filed with the state of domicile and the NAIC with this statement? NO
2. Will Supplement A to Schedule T (Medical Professional Liability Supplement) be filed with this statement? YES
3. Will the Medicare Part D Coverage Supplement be filed with the state of domicile and the NAIC with this statement? NO
4. Will the Director and Officer Insurance Coverage Supplement be filed with the state of domicile and the NAIC with this statement? YES
Explanations:
1.
3.
Bar Codes: 1. Trusteed Surplus Statement [Document Identifier 490] *10677202049000003* 3. Medicare Part D Coverage Supplement [Document Identifier 365] *10677202036500003*
15 STATEMENT AS OF SEPTEMBER 30, 2020 OF THE THE CINCINNATI INSURANCE COMPANY SCHEDULE A - VERIFICATION Real Estate 1 2 Prior Year Ended Year to Date December 31 1. Book/adjusted carrying value, December 31 of prior year 8,479,911 8,511,811 2. Cost of acquired: 2.1 Actual cost at time of acquisition 2.2 Additional investment made after acquisition 218,154 3. Current year change in encumbrances 4. Total gain (loss) on disposals 5. Deduct amounts received on disposals 6. Total foreign exchange change in book/adjusted carrying value 7. Deduct current year’s other than temporary impairment recognized 8. Deduct current year’s depreciation 199,744 250,055 9. Book/adjusted carrying value at the end of current period (Lines 1+2+3+4-5+6-7-8) 8,280,167 8,479,911 10. Deduct total nonadmitted amounts 11. Statement value at end of current period (Line 9 minus Line 10) 8,280,167 8,479,911
SCHEDULE B - VERIFICATION Mortgage Loans 1 2 Prior Year Ended Year to Date December 31 1. Book value/recorded investment excluding accrued interest, December 31 of prior year 2. Cost of acquired: 2.1 Actual cost at time of acquisition 2.2 Additional investment made after acquisition 3. Capitalized deferred interest and other 4. Accrual of discount 5. Unrealized valuation increase (decrease) 6. Total gain (loss) on disposals 7. Deduct amounts received on disposals 8. Deduct amortization of premium and mortgage NONEinterest points and commitment fees 9. Total foreign exchange change in book value/recorded investment excluding accrued interest 10. Deduct current year’s other than temporary impairment recognized 11. Book value/recorded investment excluding accrued interest at end of current period (Lines 1+2+3+4+5+6-7-8+9-10) 12. Total valuation allowance 13. Subtotal (Line 11 plus Line 12) 14. Deduct total nonadmitted amounts 15. Statement value at end of current period (Line 13 minus Line 14)
SCHEDULE BA - VERIFICATION Other Long-Term Invested Assets 1 2 Prior Year Ended Year to Date December 31 1. Book/adjusted carrying value, December 31 of prior year 222,922,403 164,607,863 2. Cost of acquired: 2.1 Actual cost at time of acquisition 88,975,406 60,125,208 2.2 Additional investment made after acquisition 20,227,854 20,147,513 3. Capitalized deferred interest and other 4. Accrual of discount 5. Unrealized valuation increase (decrease) (1,499,081) 897,232 6. Total gain (loss) on disposals 7. Deduct amounts received on disposals 4,082,117 3,918,383 8. Deduct amortization of premium and depreciation 11,714,587 12,474,112 9. Total foreign exchange change in book/adjusted carrying value 10. Deduct current year’s other than temporary impairment recognized 5,432,331 6,462,918 11. Book/adjusted carrying value at end of current period (Lines 1+2+3+4+5+6-7-8+9-10) 309,397,547 222,922,403 12. Deduct total nonadmitted amounts 13. Statement value at end of current period (Line 11 minus Line 12) 309,397,547 222,922,403
SCHEDULE D - VERIFICATION Bonds and Stocks 1 2 Prior Year Ended Year to Date December 31 1. Book/adjusted carrying value of bonds and stocks, December 31 of prior year 11,884,293,695 10,714,668,851 2. Cost of bonds and stocks acquired 789,892,560 889,067,667 3. Accrual of discount 1,826,871 2,796,670 4. Unrealized valuation increase (decrease) (225,773,857) 936,504,623 5. Total gain (loss) on disposals 41,714,779 9,150,407 6. Deduct consideration for bonds and stocks disposed of 628,694,015 643,874,684 7. Deduct amortization of premium 17,493,726 22,637,619 8. Total foreign exchange change in book/adjusted carrying value 9. Deduct current year’s other than temporary impairment recognized 38,270,010 7,153,055 10. Total investment income recognized as a result of prepayment penalties and/or acceleration fees 3,102,959 5,770,834 11. Book/adjusted carrying value at end of current period (Lines 1+2+3+4+5-6-7+8-9+10) 11,810,599,254 11,884,293,695 12. Deduct total nonadmitted amounts 13. Statement value at end of current period (Line 11 minus Line 12) 11,810,599,254 11,884,293,695
SI01 STATEMENT AS OF SEPTEMBER 30, 2020 OF THE THE CINCINNATI INSURANCE COMPANY SCHEDULE D - PART 1B Showing the Acquisitions, Dispositions and Non-Trading Activity During the Current Quarter for all Bonds and Preferred Stock by NAIC Designation 1 2 3 4 5 6 7 8 Book/Adjusted Book/Adjusted Book/Adjusted Book/Adjusted Book/Adjusted Carrying Value Acquisitions Dispositions Non-Trading Activity Carrying Value Carrying Value Carrying Value Carrying Value Beginning During During During End of End of End of December 31 NAIC Designation of Current Quarter Current Quarter Current Quarter Current Quarter First Quarter Second Quarter Third Quarter Prior Year
BONDS
1. NAIC 1 (a) 3,650,952,290 133,300,163 38,354,973 (23,604,660) 3,633,917,643 3,650,952,290 3,722,292,820 3,683,984,238 2. NAIC 2 (a) 2,371,917,981 28,043,220 45,722,600 (3,652,298) 2,450,879,218 2,371,917,981 2,350,586,302 2,464,603,221 3. NAIC 3 (a) 208,950,983 4,770,000 9,234,193 149,966,472 208,950,983 213,415,176 130,590,148 4. NAIC 4 (a) 21,764,899 50,000 13,862,237 32,898,691 21,764,899 35,577,136 28,408,215 5. NAIC 5 (a) 30,859,235 4,207,500 8,000,000 (957,878) 39,752,733 30,859,235 26,108,856 28,452,187 6. NAIC 6 (a) 40,000 3,000,000 (57,776,760) 40,000 3,040,000 40,000 7. Total Bonds 6,284,485,388 165,550,883 96,897,574 (2,118,406) 6,249,637,999 6,284,485,388 6,351,020,290 6,336,078,008
SI02
PREFERRED STOCK
8. NAIC 1 2,587,200 30,000,000 (29,603,200) 1,910,736 2,587,200 2,984,000 4,040,000 9. NAIC 2 87,053,845 26,968,915 74,318,550 87,053,845 114,022,760 79,190,956 10. NAIC 3 126,653,622 10,647,595 109,814,850 126,653,622 137,301,217 115,757,242 11. NAIC 4 6,090,000 7,000,000 12. NAIC 5 13. NAIC 6 1,000,001 1,000,001 1,000,001 1,000,001 1,000,001 14. Total Preferred Stock 217,294,668 30,000,000 8,013,310 193,134,137 217,294,668 255,307,978 206,988,198 15. Total Bonds and Preferred Stock 6,501,780,056 195,550,883 96,897,574 5,894,904 6,442,772,135 6,501,780,056 6,606,328,268 6,543,066,206 (a) Book/Adjusted Carrying Value column for the end of the current reporting period includes the following amount of short-term and cash equivalent bonds by NAIC designation: NAIC 1 $ 249,612 ; NAIC 2 $ ; NAIC 3 $ NAIC 4 $ ; NAIC 5 $ ; NAIC 6 $ STATEMENT AS OF SEPTEMBER 30, 2020 OF THE THE CINCINNATI INSURANCE COMPANY SCHEDULE DA - PART 1 Short-Term Investments 1 2 3 4 5 Paid for Book/Adjusted Interest Collected Accrued Interest Carrying Value Par Value Actual Cost Year-to-Date Year-to-Date
9199999 Totals 249,612 XXX 249,076
SCHEDULE DA - VERIFICATION Short-Term Investments 1 2
Prior Year Ended Year To Date December 31
1. Book/adjusted carrying value, December 31 of prior year
2. Cost of short-term investments acquired 249,076
3. Accrual of discount 536
4. Unrealized valuation increase (decrease)
5. Total gain (loss) on disposals
6. Deduct consideration received on disposals
7. Deduct amortization of premium
8. Total foreign exchange change in book/adjusted carrying value
9. Deduct current year’s other than temporary impairment recognized
10. Book/adjusted carrying value at end of current period (Lines 1+2+3+4+5-6-7+8-9) 249,612
11. Deduct total nonadmitted amounts
12. Statement value at end of current period (Line 10 minus Line 11) 249,612
SI03 STATEMENT AS OF SEPTEMBER 30, 2020 OF THE THE CINCINNATI INSURANCE COMPANY
Schedule DB - Part A - Verification - Options, Caps, Floors, Collars, Swaps and Forwards N O N E
Schedule DB - Part B - Verification - Futures Contracts N O N E
Schedule DB - Part C - Section 1 - Replication (Synthetic Asset) Transactions (RSATs) Open N O N E
Schedule DB-Part C-Section 2-Reconciliation of Replication (Synthetic Asset) Transactions Open N O N E
Schedule DB - Verification - Book/Adjusted Carrying Value, Fair Value and Potential Exposure of Derivatives N O N E
SI04, SI05, SI06, SI07 STATEMENT AS OF SEPTEMBER 30, 2020 OF THE THE CINCINNATI INSURANCE COMPANY SCHEDULE E - PART 2 - VERIFICATION (Cash Equivalents) 1 2
Prior Year Ended Year To Date December 31
1. Book/adjusted carrying value, December 31 of prior year 936,656
2. Cost of cash equivalents acquired 8,330,467 32,645,103
3. Accrual of discount 48,000
4. Unrealized valuation increase (decrease) 38
5. Total gain (loss) on disposals (430) (243)
6. Deduct consideration received on disposals 8,804,758 31,756,204
7. Deduct amortization of premium
8. Total foreign exchange change in book/adjusted carrying value
9. Deduct current year’s other than temporary impairment recognized
10. Book/adjusted carrying value at end of current period (Lines 1+2+3+4+5-6-7+8-9) 461,973 936,656
11. Deduct total nonadmitted amounts
12. Statement value at end of current period (Line 10 minus Line 11) 461,973 936,656
SI08 STATEMENT AS OF SEPTEMBER 30, 2020 OF THE THE CINCINNATI INSURANCE COMPANY
Schedule A - Part 2 - Real Estate Acquired and Additions Made N O N E
Schedule A - Part 3 - Real Estate Disposed N O N E
Schedule B - Part 2 - Mortgage Loans Acquired and Additions Made N O N E
Schedule B - Part 3 - Mortgage Loans Disposed, Transferred or Repaid N O N E
E01, E02 STATEMENT AS OF SEPTEMBER 30, 2020 OF THE THE CINCINNATI INSURANCE COMPANY SCHEDULE BA - PART 2 Showing Other Long-Term Invested Assets ACQUIRED AND ADDITIONS MADE During the Current Quarter 1 2 Location 5 6 7 8 9 10 11 12 13 3 4 NAIC Designation and Commitment Admini- Date Type Actual Cost Additional for CUSIP Name of Vendor strative Originally and at Time of Investment Made Amount of Additional Percentage of Identification Name or Description City State or General Partner Symbo Acquired Strategy Acquisition After Acquisition Encumbrances Investment Ownership STRATTAM CAPITAL INVESTMENT FUND II, L.P. WILMINGTON DE STRATTAM CAPITAL INVESTMENT FUND II GP, LLC 05/16/2018 368,570 12.500 ASTOR PLACE FUND I, L.P. GRAND CAYMAN ASTOR PLACE SI GP, L.P. 07/18/2019 3,007,206 11.570 ROTUNDA CAPITAL PARTNERS FUND II, L.P. BETHESDA MD ROTUNDA CAPITAL PARTNERS GP II, L.P. 06/07/2019 106,630 20.310 ACCESS HOLDINGS FUND I, L.P. BALTIMORE MD ACCESS HOLDINGS I GP, L.P. 07/23/2020 2,914,907 5,739,384 10.890 RCP SOF III OVERAGE FUND, L.P. WILMINGTON DE RCP SOF III OVERAGE FUND, GP, L.P. 09/29/2020 1,100,000 17.130 1599999. Joint Venture Interests - Fixed Income - NAIC Designation Assigned by the SVO - Unaffiliated 4,014,907 9,221,790 XXX CITYMARK CAPITAL U.S. APARTMENT FUND II L.P. WILMINGTON DE CITYMARK CAPITAL GP II, LLC 10/09/2018 1,473,197 30.900 1799999. Joint Venture Interests - Fixed Income - NAIC Designation Not Assigned by the SVO - Unaffiliated 1,473,197 XXX CIC UPTOWN INVESTMENTS I, LLC FAIRFIELD OH CIC UPTOWN INVESTMENTS I, LLC 08/20/2018 3,538,803 100.000 1899999. Joint Venture Interests - Fixed Income - NAIC Designation Not Assigned by the SVO - Affiliated 3,538,803 XXX CAPITAL PARTNERS SERIES CF IV, LLC COLUMBIA MO CAPITAL PARTNERS MANAGEMENT II, LLC 09/01/2020 68,284,201 99.990 4199999. Non-Guaranteed State Low Income Housing Tax Credit - Unaffiliated 68,284,201 XXX 4899999. Total - Unaffiliated 72,299,108 10,694,987 XXX 4999999. Total - Affiliated 3,538,803 XXX
5099999 - Totals 72,299,108 14,233,790 XXX
E03 SCHEDULE BA - PART 3 Showing Other Long-Term Invested Assets DISPOSED, Transferred or Repaid During the Current Quarter 1 2 Location 5 6 7 8 Change in Book/Adjusted Carrying Value 15 16 17 18 19 20 3 4 9 10 11 12 13 14 Book/ Current Book/ Adjusted Year’s Total Total Adjusted Carrying Current Other Change in Foreign Carrying Value Year’s Than Capital- Book/ Exchange Value Foreign Less Unrealized (Depre- Temporary ized Adjusted Change in Less Exchange Encum- Valuation ciation) or Impair- Deferred Carrying Book/ Encum- Gain Realized Total Date brances, Increase (Amorti- ment Interest Value Adjusted brances (Loss) Gain Gain Invest- CUSIP Name of Purchaser or Originally Disposal Prior (De- zation)/ Recog- and (9+10- Carrying on Consid- on (Loss) on (Loss) on ment Identification Name or Description City State Nature of Disposal Acquired Date Year crease) Accretion nized Other 11+12) Value Disposal eration Disposal Disposal Disposal Income W CAPITAL PARTNERS IV, L.P. WILMINGTON DE Distribution 07/09/2018 08/24/2020 946,671 946,671 946,671 ASTOR PLACE FUND I, L.P. GRAND CAYMAN Distribution 07/18/2019 09/29/2020 61,930 61,930 61,930 1599999. Joint Venture Interests - Fixed Income - NAIC Designation Assigned by the SVO - Unaffiliated 1,008,601 1,008,601 1,008,601 4899999. Total - Unaffiliated 1,008,601 1,008,601 1,008,601 4999999. Total - Affiliated
5099999 - Totals 1,008,601 1,008,601 1,008,601 STATEMENT AS OF SEPTEMBER 30, 2020 OF THE THE CINCINNATI INSURANCE COMPANY SCHEDULE D - PART 3 Show All Long-Term Bonds and Stock Acquired During the Current Quarter 1 2 3 4 5 6 7 8 9 10 NAIC Designation and Number of Paid for Accrued Admini- CUSIP Date Shares of Interest and strative Identification Description Foreign Acquired Name of Vendor Stock Actual Cost Par Value Dividends Symbol 006620-LP-1 ADDISON PARK DIST ILL 09/11/2020 RAYMOND JAMES/FI 1,102,574 1,110,000 1FE 006620-LQ-9 ADDISON PARK DIST ILL 09/11/2020 RAYMOND JAMES/FI 1,747,539 1,760,000 1FE 01728V-VB-3 ALLEGHENY CNTY PA 07/23/2020 PNC BANK, N.A./IPA 1,356,550 1,250,000 1FE 018340-TB-5 ALLENTOWN PA 09/10/2020 Stifel Nicolaus & Co. 801,577 700,000 1FE 097552-UL-5 BOLINGBROOK ILL 08/14/2020 MESIROW FINANCIAL INC. 3,000,000 3,000,000 1FE 12739T-BP-3 CADENCE CMNTY FACS DIST ARIZ 09/24/2020 Stifel Nicolaus & Co. 982,140 1,000,000 1FE 182846-DL-6 CLATSOP CNTY ORE SCH DIST NO 010 09/24/2020 Piper Jaffray & CO/ALGO 493,750 500,000 1FE 214165-LQ-3 COOK CNTY ILL SCH DIST NO 087 BERKELEY 08/18/2020 MESIROW FINANCIAL INC. 1,521,900 1,565,000 1FE 22941L-AV-1 CRYSTAL VY COLO MET DIST NO 2 09/10/2020 WELLS FARGO SECURITIES LLC 1,745,550 1,500,000 1FE 259327-T9-5 DOUGLAS CNTY NEB SCH DIST NO 017 MILLARD 08/13/2020 DAVIDSON D.A. + COMPANY INC. 1,000,000 1,000,000 1FE 277482-DM-4 EASTMARK CMNTY FACS DIST NO 1 ARIZ 09/24/2020 Stifel Nicolaus & Co. 3,191,955 3,250,000 1FE 358232-6M-3 FRESNO CALIF UNI SCH DIST 09/17/2020 DTC WITHDRAW, DRS ETC. 895,560 850,000 1FE 41422L-JM-0 HARRIS CNTY TEX MUN UTIL DIST NO 287 08/31/2020 HILLTOP SECURITIES INC 1,112,801 1,130,000 1,978 2FE 41422L-JP-3 HARRIS CNTY TEX MUN UTIL DIST NO 287 08/31/2020 HILLTOP SECURITIES INC 1,116,180 1,130,000 2,087 2FE 427542-NB-7 HERMISTON ORE 09/10/2020 Piper Jaffray & CO/ALGO 684,493 580,000 1FE 488683-JK-0 KENDALL CNTY ILL CMNTY UNIT SCH DIST NO 08/20/2020 Piper Jaffray & CO/ALGO 2,085,000 2,085,000 1FE 488683-JL-8 KENDALL CNTY ILL CMNTY UNIT SCH DIST NO 08/20/2020 Piper Jaffray & CO/ALGO 1,500,000 1,500,000 1FE 580415-MM-6 MC FARLAND CALIF UNI SCH DIST 09/10/2020 RAYMOND JAMES/FI 1,255,000 1,255,000 1FE 611116-BL-7 MONROE MICH PUB SCHS 08/13/2020 FIFTH THIRD BANK 975,830 1,000,000 1FE 623385-FL-0 MOUNT VERNON ILL 08/21/2020 DAVIDSON (D.A.) & CO. INC. 897,437 765,000 1FE 63877N-NZ-6 NATOMAS UNI SCH DIST CALIF 09/16/2020 MESIROW FINANCIAL INC. 1,515,629 1,440,000 1FE 64966Q-MJ-6 NEW YORK N Y 08/28/2020 CITIGROUP GLOBAL MARKETS INC. 596,280 500,000 1FE 738562-BK-2 POUDRE TECH MET DIST COLO UNLIMITED PPTY 08/20/2020 RBC DAIN RAUSCHER 1,686,896 1,550,000 1FE
738562-BL-0 POUDRE TECH MET DIST COLO UNLIMITED PPTY 08/20/2020 RBC DAIN RAUSCHER 1,735,152 1,600,000 1FE E04 772487-3Q-5 ROCK ISLAND ILL 09/30/2020 RW Baird 723,813 645,000 1FE 799561-NL-5 SAN YSIDRO CALIF SCH DIST 09/04/2020 Stifel Nicolaus & Co. 1,134,070 1,000,000 1FE 804237-CG-8 SAUGUS CALIF UN SCH DIST SCH FACS IMPT D 09/11/2020 Stifel Nicolaus & Co. 1,401,218 1,300,000 1FE 877792-EP-2 TAZEWELL CNTY ILL CMNTY HIGH SCH DIST NO 08/13/2020 MESIROW FINANCIAL INC. 1,175,309 1,210,000 1FE 877792-EQ-0 TAZEWELL CNTY ILL CMNTY HIGH SCH DIST NO 08/13/2020 MESIROW FINANCIAL INC. 982,120 1,000,000 1FE 897659-RL-4 TROY OHIO 09/02/2020 HILLTOP SECURITIES 522,810 500,000 1FE 915633-LN-9 UPPER DARBY PA SCH DIST 09/10/2020 RBC CAPITAL MARKETS 573,190 500,000 1FE 915633-LP-4 UPPER DARBY PA SCH DIST 09/10/2020 RBC DAIN RAUSCHER 571,600 500,000 1FE 969173-LJ-0 WILLARD OHIO CITY SCH DIST 09/24/2020 BAIRD (ROBERT W.) & CO. INC. 1,368,747 1,390,000 1FE 983323-SF-4 WYOMING MICH PUB SCHS 09/17/2020 Stifel Nicolaus & Co. 1,174,970 1,000,000 1FE 2499999. Subtotal - Bonds - U.S. Political Subdivisions of States, Territories and Possessions 42,627,640 41,065,000 4,065 XXX 017357-H5-6 ALLEGHENY CNTY PA SAN AUTH SWR REV 09/17/2020 PNC BANK, N.A./IPA 1,060,310 1,000,000 1FE 04052E-AV-0 ARIZONA INDL DEV AUTH HOSP REV 08/07/2020 Merrill Lynch 639,150 600,000 1FE 041806-B6-6 ARLINGTON TEX HIGHER ED FIN CORP ED REV 08/21/2020 RBC CAPITAL MARKETS 3,120,722 3,165,000 1FE 114731-AP-7 BROOME CNTY N Y LOC DEV CORP REV 08/13/2020 Merrill Lynch 1,072,440 1,000,000 1FE 11502R-BD-1 BROWARD CNTY FLA HALF-CENT SALES TAX REV 09/10/2020 JP MORGAN SECURITIES LLC 1,088,500 1,000,000 1FE 155498-JM-1 CENTRAL TEX REGL MOBILITY AUTH REV 08/26/2020 MORGAN STANLEY & CO INC, NY 4,991,032 5,000,000 8,968 2FE 19648F-QG-2 COLORADO HEALTH FACS AUTH REV 07/01/2020 Stifel Nicolaus & Co. 1,670,000 1,670,000 2FE 305136-AU-7 FAIRLESS OHIO LOC SCH DIST CTFS PARTN 08/07/2020 Stifel Nicolaus & Co. 1,321,192 1,230,000 1FE 421731-CB-4 HAZELWOOD MO SCH DIST CTFS PARTN 09/16/2020 Stifel Nicolaus & Co. 1,523,610 1,425,000 1FE 46613S-QP-8 JEA FLA ELEC SYS REV 07/10/2020 JP MORGAN SECURITIES LLC 1,056,910 1,000,000 1FE 54675Q-CT-8 LOUISVILLE/JEFFERSON CNTY KY METRO GOVT 07/23/2020 RW Baird 600,000 600,000 2FE 55646F-AT-7 MADERA CNTY CALIF PUB FING AUTH LEASE RE 07/23/2020 Merrill Lynch 1,435,592 1,335,000 1FE 57584Y-C3-1 MASSACHUSETTS ST DEV FIN AGY REV 07/09/2020 Merrill Lynch 1,970,386 1,955,000 2FE 57584Y-C4-9 MASSACHUSETTS ST DEV FIN AGY REV 07/09/2020 Merrill Lynch 2,033,809 2,025,000 2FE 586158-RC-3 MEMPHIS TENN ELEC SYS REV 09/04/2020 RAYMOND JAMES/FI 1,916,772 1,765,000 1FE 590545-N8-8 MESA ARIZ UTIL SYS REV 07/15/2020 Unknown 828,457 840,000 1,062 1FE 590545-N9-6 MESA ARIZ UTIL SYS REV 07/15/2020 Unknown 249,760 250,000 316 1FE 621453-AT-6 MOUNT HEALTHY OHIO CITY SCH DIST CTFS PA 08/20/2020 Stifel Nicolaus & Co. 2,744,882 2,590,000 1FE 624543-HF-4 MOUNTAINTOP AREA JT SAN AUTH PA SWR REV 08/28/2020 RBC DAIN RAUSCHER 1,287,600 1,200,000 1FE 644684-EE-8 NEW HAMPSHIRE ST BUSINESS FIN AUTH WTR F 08/27/2020 B. C. ZIEGLER & CO. 1,000,000 1,000,000 1FE 647370-KL-8 NEW MEXICO ST HOSP EQUIP LN COUNCIL HOSP 09/02/2020 Piper Jaffray & CO/ALGO 549,685 500,000 2FE 64971X-SB-5 NEW YORK N Y CITY TRANSITIONAL FIN AUTH 08/21/2020 Merrill Lynch 1,081,980 1,000,000 1FE 64972E-SE-0 NEW YORK N Y CITY HSG DEV CORP MULTIFAMI 08/14/2020 SIEBERT BRANDORD & SHANK 3,000,000 3,000,000 1FE 650036-CB-0 NEW YORK ST URBAN DEV CORP REV 07/17/2020 Merrill Lynch 1,067,660 1,000,000 1FE 68562R-AV-9 ORCHARD FARM R-V SCH DIST MO CTFS PARTN 09/16/2020 Stifel Nicolaus & Co. 2,243,203 2,150,000 1FE 698148-BF-9 PANAMA CITY BEACH FLA CAP IMPT REV 09/16/2020 RAYMOND JAMES/FI 567,878 450,000 1FE STATEMENT AS OF SEPTEMBER 30, 2020 OF THE THE CINCINNATI INSURANCE COMPANY SCHEDULE D - PART 3 Show All Long-Term Bonds and Stock Acquired During the Current Quarter 1 2 3 4 5 6 7 8 9 10 NAIC Designation and Number of Paid for Accrued Admini- CUSIP Date Shares of Interest and strative Identification Description Foreign Acquired Name of Vendor Stock Actual Cost Par Value Dividends Symbol 698148-BG-7 PANAMA CITY BEACH FLA CAP IMPT REV 09/16/2020 RAYMOND JAMES/FI 628,910 500,000 1FE 798153-NU-2 SAN JOSE CALIF FING AUTH LEASE REV 09/11/2020 JP MORGAN SECURITIES LLC 1,000,000 1,000,000 1FE 881100-CU-3 TERRE HAUTE IND SAN DIST REV 08/12/2020 RW Baird 1,112,884 1,125,000 1FE 881100-CV-1 TERRE HAUTE IND SAN DIST REV 08/12/2020 RW Baird 877,727 890,000 1FE 881182-BT-5 TERREBONNE LEVEE & CONSV DIST LA PUB IMP 08/27/2020 RAYMOND JAMES/FI 4,784,616 4,170,000 1FE 943011-KZ-8 WAUKEGAN ILL WTR & SWR REV 09/16/2020 BAIRD (ROBERT W.) & CO. INC. 566,310 500,000 1FE 943011-LA-2 WAUKEGAN ILL WTR & SWR REV 09/16/2020 BAIRD (ROBERT W.) & CO. INC. 562,780 500,000 1FE 968546-ML-2 WILKINSBURG PENN PA JT WTR AUTH WTR REV 07/23/2020 Piper Jaffray & CO/ALGO 1,061,660 1,000,000 1FE 3199999. Subtotal - Bonds - U.S. Special Revenues 50,716,416 48,435,000 10,346 XXX 04004X-AA-3 ARENA FINANCE II LLC 09/29/2020 DTC WITHDRAW, DRS ETC. 10,000,000 10,000,000 1FE 048269-AB-0 ATLANTIC CAPITAL BANCSHARES, INC. 08/20/2020 DTC WITHDRAW, DRS ETC. 3,000,000 3,000,000 2FE 05465C-AA-8 AXOS FINANCIAL INC 09/15/2020 Stifel Nicolaus & Co. 5,000,000 5,000,000 2FE 05526D-BT-1 BAT CAPITAL CORP 09/22/2020 DEUTSCHE BANK SECURITIES, INC. 2,000,000 2,000,000 2FE 12634Q-AJ-0 CRB GROUP INC 08/20/2020 DTC WITHDRAW, DRS ETC. 6,000,000 6,000,000 2FE 140501-AA-5 CAPITAL SOUTHWEST CORP 08/12/2020 RAYMOND JAMES/FI 3,000,000 3,000,000 60,917 1PL 20369G-AA-5 COMMUNITY FINANCIAL SERVICES, INC. 07/29/2020 Not Available 5,000,000 5,000,000 2Z 29460X-AA-7 EQUITY BANCSHARES INC 07/23/2020 Not Available 1,000,000 1,000,000 4,667 2Z 29911Q-AB-5 EVANS BANCORP INC 07/09/2020 Not Available 3,000,000 3,000,000 2FE 30212P-BB-0 EXPEDIA GROUP INC 07/07/2020 JP MORGAN SECURITIES LLC 2,999,910 3,000,000 2FE 33766N-AJ-3 FIRST BANK 4.50 FIXED TO FLOAT 9/1/2030 08/31/2020 DTC WITHDRAW, DRS ETC. 3,000,000 3,000,000 2FE 41138P-AC-7 HAPPY BANCSHARES, INC. 07/30/2020 DTC WITHDRAW, DRS ETC. 3,000,000 3,000,000 2FE 42727V-AA-3 HERITAGE SOUTHEAST BANCORPORATION INC. 06/29/2020 PERFORMANCE TRUST CAP (583) 583 2Z
53262L-AA-3 LIMESTONE BANCORP, INC. 07/14/2020 RAYMOND JAMES/FI 4,207,500 4,250,000 5GI E04.1 55412L-AA-7 MABREY BANCORPORATION INC. 08/06/2020 DTC WITHDRAW, DRS ETC. 2,000,000 2,000,000 2FE 598511-AA-1 MIDWESTONE FINANCIAL GROUP INC (IOWA) 07/28/2020 DTC WITHDRAW, DRS ETC. 5,000,000 5,000,000 2FE 700885-AA-4 PARKE BANCORP, INC. 07/15/2020 DTC WITHDRAW, DRS ETC. 4,000,000 4,000,000 1FE 75970E-AD-9 RENASANT CORP 09/01/2020 DTC WITHDRAW, DRS ETC. 3,000,000 3,000,000 2FE 825107-AA-3 SHORE BANCSHARES INC 08/25/2020 Not Available 3,000,000 3,000,000 2FE 843395-AB-0 SOUTHERN NATIONAL BANCORP OF VIRGINIA IN 08/20/2020 JANNEY MONTGOMERY SCOTT INC 4,000,000 4,000,000 2FE 3899999. Subtotal - Bonds - Industrial and Miscellaneous (Unaffiliated) 72,206,827 72,250,000 66,167 XXX 8399997. Total - Bonds - Part 3 165,550,883 161,750,000 80,577 XXX 8399998. Total - Bonds - Part 5 XXX XXX XXX XXX 8399999. Total - Bonds 165,550,883 161,750,000 80,577 XXX 126128-20-6 CNB FINANCIAL CORP 08/20/2020 JANNEY MONTGOMERY SCOTT INC 300,000.000 7,500,000 0.00 2Z 52730F-20-3 LEVEL ONE BANCORP INC 08/10/2020 Piper Jaffray & CO/ALGO 280,000.000 7,000,000 0.00 3FE 760416-20-6 REPUBLIC FIRST BANCORP, INC. 08/26/2020 SANDLER O'NEILL & PARTNERS, LP 320,000.000 8,000,000 0.00 2Z 950810-70-5 WESBANCO INC 08/04/2020 Stifel Nicolaus & Co. 300,000.000 7,500,000 0.00 2FE 8499999. Subtotal - Preferred Stocks - Industrial and Miscellaneous (Unaffiliated) Perpetual Preferred 30,000,000 XXX XXX 8999997. Total - Preferred Stocks - Part 3 30,000,000 XXX XXX 8999998. Total - Preferred Stocks - Part 5 XXX XXX XXX XXX 8999999. Total - Preferred Stocks 30,000,000 XXX XXX 032654-10-5 ANALOG DEVICES ORD 08/05/2020 Stifel Nicolaus & Co. 18,900.000 2,187,989 053015-10-3 AUTOMATIC DATA PROCESSING ORD 09/04/2020 RBC CAPITAL MARKETS 10,000.000 1,390,246 053484-10-1 AVALONBAY COMMUNITIES REIT ORD 09/09/2020 RBC CAPITAL MARKETS 106,000.000 16,873,311 071813-10-9 BAXTER INTERNATIONAL ORD 09/10/2020 Various 146,000.000 12,001,454 11135F-10-1 BROADCOM ORD 08/10/2020 Stifel Nicolaus & Co. 14,000.000 4,581,129 16411Q-10-1 CHENIERE ENERGY PARTNERS UNT 08/12/2020 Various 2,533.000 98,515 18539C-20-4 CLEARWAY ENERGY CL C ORD 09/29/2020 Various 9,539.000 234,780 478160-10-4 JOHNSON & JOHNSON ORD 08/13/2020 Stifel Nicolaus & Co. 19,000.000 2,815,002 49456B-10-1 KINDER MORGAN CL P ORD 08/07/2020 CITIGROUP GLOBAL MARKETS INC. 23,801.000 345,190 559080-10-6 MAGELLAN MIDSTREAM PARTNERS UNT 08/19/2020 UBS SECURITIES 1,841.000 76,239 609207-10-5 MONDELEZ INTERNATIONAL CL A ORD 09/21/2020 Piper Jaffray & CO/ALGO 175,000.000 10,011,761 65339F-10-1 NEXTERA ENERGY ORD 09/24/2020 Various 1,163.000 326,126 65341B-10-6 NEXTERA ENERGY PARTNERS UNT 09/30/2020 Various 14,233.000 854,791 67058H-10-2 NUSTAR ENERGY UNT 08/11/2020 Various 26,529.000 373,628 717081-10-3 PFIZER ORD 08/13/2020 Stifel Nicolaus & Co. 71,000.000 2,702,821 723484-10-1 PINNACLE WEST ORD 07/07/2020 Various 86,238.000 6,573,275 87612G-10-1 TARGA RESOURCES ORD 07/07/2020 RBC CAPITAL MARKETS 7,738.000 147,832 87807B-10-7 TC ENERGY ORD C 09/11/2020 Various 18,530.000 870,454 STATEMENT AS OF SEPTEMBER 30, 2020 OF THE THE CINCINNATI INSURANCE COMPANY SCHEDULE D - PART 3 Show All Long-Term Bonds and Stock Acquired During the Current Quarter 1 2 3 4 5 6 7 8 9 10 NAIC Designation and Number of Paid for Accrued Admini- CUSIP Date Shares of Interest and strative Identification Description Foreign Acquired Name of Vendor Stock Actual Cost Par Value Dividends Symbol 969457-10-0 WILLIAMS ORD 07/20/2020 Various 20,264.000 385,208 N53745-10-0 LYONDELLBASELL INDUSTRIES CL A ORD 08/13/2020 TRADEBOOK 43,000.000 2,979,801 9099999. Subtotal - Common Stocks - Industrial and Miscellaneous (Unaffiliated) Publicly Traded 65,829,551 XXX XXX 9799997. Total - Common Stocks - Part 3 65,829,551 XXX XXX 9799998. Total - Common Stocks - Part 5 XXX XXX XXX XXX 9799999. Total - Common Stocks 65,829,551 XXX XXX 9899999. Total - Preferred and Common Stocks 95,829,551 XXX XXX 9999999 - Totals 261,380,433 XXX 80,577 XXX
E04.2 STATEMENT AS OF SEPTEMBER 30, 2020 OF THE THE CINCINNATI INSURANCE COMPANY SCHEDULE D - PART 4 Show All Long-Term Bonds and Stock Sold, Redeemed or Otherwise Disposed of During the Current Quarter 1 2 3 4 5 6 7 8 9 10 Change In Book/Adjusted Carrying Value 16 17 18 19 20 21 22 11 12 13 14 15 Total Total Current Change in Foreign Bond NAIC Year's Book/ Exchange Book/ Interest/ Desig- Prior Year Current Other Than Adjusted Change in Adjusted Foreign Stock Stated nation Book/ Unrealized Year's Temporary Carrying Book Carrying Exchange Realized Dividends Con- and CUSIP Number of Adjusted Valuation (Amor- Impairment Value /Adjusted Value at Gain Gain Total Gain Received tractual Admini- Ident- For- Disposal Name Shares of Consid- Actual Carrying Increase/ tization)/ Recog- (11 + 12 - Carrying Disposal (Loss) on (Loss) on (Loss) on During Maturity strative ification Description eign Date of Purchaser Stock eration Par Value Cost Value (Decrease) Accretion nized 13) Value Date Disposal Disposal Disposal Year Date Symbol 083419-A6-8 BENTONVILLE ARK SCH DIST NO 006 09/01/2020 Call @ 100.00 1,295,000 1,295,000 1,273,011 1,279,341 964 964 1,280,306 14,694 14,694 29,138 06/01/2029 1FE 083419-A8-4 BENTONVILLE ARK SCH DIST NO 006 09/01/2020 Call @ 100.00 1,380,000 1,380,000 1,371,403 1,373,555 314 314 1,373,869 6,131 6,131 33,638 06/01/2031 1FE 083419-YY-1 BENTONVILLE ARK SCH DIST NO 006 09/01/2020 Call @ 100.00 1,170,000 1,170,000 1,163,752 1,166,211 307 307 1,166,518 3,482 3,482 26,325 06/01/2027 1FE 094077-LQ-5 BLOOMFIELD N MEX MUN SCH DIST NO 006 09/01/2020 Maturity @ 100.00 2,000,000 2,000,000 2,265,940 2,022,016 (22,016) (22,016) 2,000,000 100,000 09/01/2020 1FE 096509-LX-0 BLYTHEVILLE ARK SCH DIST NO 005 08/01/2020 Call @ 100.00 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 30,000 02/01/2027 1FE 108151-U7-4 BRIDGEPORT CONN 09/15/2020 Call @ 100.00 1,090,000 1,090,000 1,090,000 1,090,000 1,090,000 59,874 09/15/2023 1FE 256309-TG-0 DODGE CITY KANS 09/01/2020 Call @ 100.00 1,095,000 1,095,000 1,139,720 1,099,020 (4,020) (4,020) 1,095,000 32,850 09/01/2020 1FE 283770-CZ-6 EL PASO TEX INDPT SCH DIST 08/15/2020 Maturity @ 100.00 1,000,000 1,000,000 1,165,910 1,012,657 (12,657) (12,657) 1,000,000 50,000 08/15/2020 1FE 296804-LK-1 ESSEX CNTY N J 08/01/2020 Maturity @ 100.00 1,480,000 1,480,000 1,667,531 1,492,724 (12,724) (12,724) 1,480,000 74,000 08/01/2020 1FE 412486-4Z-2 HARFORD CNTY MD 07/01/2020 Call @ 100.00 2,000,000 2,000,000 2,043,200 2,002,681 (2,681) (2,681) 2,000,000 102,500 07/01/2024 1FE 521838-VV-1 LEANDER TEX 08/15/2020 Call @ 100.00 1,605,000 1,605,000 1,761,728 1,618,074 (13,074) (13,074) 1,605,000 64,200 08/15/2022 1FE 567137-A2-0 MARICOPA CNTY ARIZ SCH DIST NO 028 KYREN 07/01/2020 Call @ 100.00 1,590,000 1,590,000 1,602,227 1,590,770 (770) (770) 1,590,000 83,475 07/01/2022 1FE 665352-LX-6 NORTHERN LEHIGH PA SCH DIST 08/19/2020 Call @ 100.00 385,000 385,000 385,000 385,000 385,000 6,702 03/01/2022 1FE 677521-AH-9 OHIO STATE 08/01/2020 Call @ 100.00 5,000,000 5,000,000 4,967,050 4,997,873 2,127 2,127 5,000,000 168,750 08/01/2020 1FE 703023-MF-5 PATCHOGUE-MEDFORD N Y UN FREE SCH DIST 07/01/2020 Maturity @ 100.00 1,875,000 1,875,000 2,252,438 1,901,144 (26,144) (26,144) 1,875,000 93,750 07/01/2020 1FE 774268-MD-5 ROCKWALL CNTY TEX 07/14/2020 Call @ 100.00 1,275,000 1,275,000 1,245,089 1,265,680 9,320 9,320 1,275,000 24,296 02/01/2023 1FE 2499999. Subtotal - Bonds - U.S. Political Subdivisions of States, Territories and Possessions 25,240,000 25,240,000 26,393,998 25,296,746 (81,053) (81,053) 25,215,692 24,308 24,308 979,497 XXX XXX 196479-S2-6 COLORADO HSG & FIN AUTH 09/01/2020 Call @ 100.00 155,000 155,000 155,000 155,000 155,000 3,263 11/01/2033 1FE 263893-BY-4 DUBUQUE IOWA CMNTY SCH DIST SCH INFRASTR 07/15/2020 Call @ 100.00 1,000,000 1,000,000 986,210 989,987 452 452 990,440 9,560 9,560 36,361 01/01/2030 1FE
312432-WC-7 FAYETTE CNTY KY SCH DIST FIN CORP SCH BL 07/01/2020 Maturity @ 100.00 2,000,000 2,000,000 2,113,160 2,007,711 (7,711) (7,711) 2,000,000 60,000 07/01/2020 1FE E05 343136-R3-3 FLORIDA ST TPK AUTH TPK REV 07/01/2020 Call @ 100.00 2,020,000 2,000,000 2,203,140 2,030,905 (10,905) (10,905) 2,020,000 (20,000) (20,000) 120,000 07/01/2023 1FE 427585-GH-1 HERMITAGE PA MUN AUTH SWR REV 08/01/2020 Call @ 100.00 1,935,000 1,935,000 1,890,959 1,903,228 1,671 1,671 1,904,899 30,101 30,101 58,050 08/01/2029 1FE 590545-A9-0 MESA ARIZ UTIL SYS REV 07/15/2020 Unknown 828,457 840,000 822,612 827,867 590 590 828,457 28,362 07/01/2029 1FE 590545-B2-4 MESA ARIZ UTIL SYS REV 07/15/2020 Unknown 249,760 250,000 249,625 249,749 11 11 249,760 8,441 07/01/2030 1FE 593791-EH-5 MIAMI UNIV OHIO GEN RCPTS 09/01/2020 Maturity @ 100.00 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 111,260 09/01/2020 1FE 60416S-K6-6 MINNESOTA ST HSG FIN AGY 09/01/2020 Call @ 100.00 70,000 70,000 70,000 70,000 70,000 2,809 07/01/2034 1FE 60416S-XC-9 MINNESOTA ST HSG FIN AGY 09/01/2020 Call @ 100.00 95,000 95,000 95,000 95,000 95,000 3,593 07/01/2032 1FE 60416S-YP-9 MINNESOTA ST HSG FIN AGY 09/01/2020 Call @ 100.00 40,000 40,000 40,000 40,000 40,000 1,698 07/01/2033 1FE 745190-UF-3 PUERTO RICO COMWLTH HWY & TRANSN AUTH TR 07/01/2020 Maturity @ 100.00 1,000,000 1,000,000 922,690 993,052 6,948 6,948 1,000,000 40,000 07/01/2020 1FE 80802V-AN-3 SCHOOLS INFRASTRUCTURE FING AGY CALIF SP 09/01/2020 Call @ 100.00 355,350 345,000 387,542 366,494 (2,849) (2,849) 363,645 (18,645) (18,645) 20,328 09/01/2027 1FE 3199999. Subtotal - Bonds - U.S. Special Revenues 11,748,567 11,730,000 11,935,938 11,728,993 (11,792) (11,792) 11,717,201 1,016 1,016 494,163 XXX XXX 00751Y-AB-2 ADVANCE AUTO PARTS INC 09/17/2020 Call @ 100.00 5,262,850 5,000,000 4,904,240 4,973,234 9,069 9,069 4,982,302 17,698 17,698 525,975 01/15/2022 2FE 048269-AA-2 ATLANTIC CAPITAL BANCSHARES INC 09/30/2020 Call @ 100.00 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 250,000 09/30/2025 2FE 10240*-AA-7 BOWIE ACQUISITIONS LLC 06/30/2020 Paydown 1,459 09/30/2038 2PL 11133T-AB-9 BROADRIDGE FINANCIAL SOLUTIONS INC 09/01/2020 Maturity @ 100.00 3,000,000 3,000,000 2,996,130 2,999,624 376 376 3,000,000 118,500 09/01/2020 2FE 12325J-AA-9 BUSINESS DEV CORP OF AMER 08/14/2020 Call @ 100.00 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 285,833 09/01/2020 2PL 12505J-AB-9 CBL & ASSOCIATES LP 06/30/2020 Adjustment (29,517) (29,517) (29,517) 29,517 10/15/2024 6FE 12701#-AB-9 CRG ISSUER 2017-1 - CDO 07/28/2020 Paydown 443,420 443,420 443,420 443,420 443,420 17,626 07/15/2025 1PL 12717@-AA-5 CVS PASS-THROUGH TRUST 08/10/2020 Paydown 5,259 5,259 5,259 5,259 5,259 118 11/10/2041 2PL 12717@-AA-5 CVS PASS-THROUGH TRUST 09/10/2020 Paydown 2,642 2,642 2,642 2,642 2,642 85 11/10/2041 2 205887-BL-5 CONAGRA BRANDS INC 08/15/2020 Maturity @ 100.00 2,000,000 2,000,000 1,997,551 1,999,796 204 204 2,000,000 99,000 08/15/2020 2FE 219023-AF-5 INGREDION INC 07/09/2020 Call @ 100.00 6,078,337 6,000,000 5,932,320 5,993,156 4,251 4,251 5,997,406 2,594 2,594 269,504 11/01/2020 2FE 25389J-AL-0 DIGITAL REALTY TRUST LP 08/03/2020 Call @ 100.00 2,120,612 2,000,000 1,984,720 1,994,065 1,348 1,348 1,995,413 4,587 4,587 206,634 07/01/2022 2FE 30212P-AH-8 EXPEDIA GROUP INC 08/15/2020 Maturity @ 100.00 1,000,000 1,000,000 998,930 999,936 64 64 1,000,000 59,500 08/15/2020 2FE 30288*-AA-8 FLNG LIQUEFACTION 2, LLC 09/30/2020 Paydown 74,400 74,400 74,400 74,400 74,400 3,378 03/31/2038 2FE 340711-AT-7 FLORIDA GAS TRANSMISSION COMPANY LLC 07/15/2020 Maturity @ 100.00 1,000,000 1,000,000 998,260 999,886 114 114 1,000,000 54,500 07/15/2020 2FE 37045X-AY-2 GENERAL MOTORS FINANCIAL COMPANY INC 07/13/2020 Maturity @ 100.00 1,500,000 1,500,000 1,499,580 1,499,955 45 45 1,500,000 48,000 07/13/2020 2FE 41138P-AA-1 HAPPY BANCSHARES INC 08/01/2020 Call @ 100.00 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 235,000 08/01/2025 2FE 45082@-AA-2 IBERIA PASS THROUGH TRUST 2019-1B 09/20/2020 Paydown 24,968 24,968 24,968 24,968 24,968 1,386 09/20/2029 2PL 460146-CE-1 INTERNATIONAL PAPER CO 08/03/2020 Call @ 100.00 723,617 676,000 675,459 675,940 21 21 675,961 39 39 131,949 08/15/2021 2FE 50067H-AC-1 KORTH DIRECT MORTGAGE INC. 09/25/2020 Call @ 100.00 10,690 10,690 10,690 10,690 10,690 374 11/25/2024 1PL 53947N-AA-2 LLOYDS BANK PLC C 09/14/2020 Maturity @ 100.00 2,000,000 2,000,000 1,987,840 1,998,942 1,058 1,058 2,000,000 130,000 09/14/2020 2FE 55316F-AC-3 MM FINISHED LOTS HOLDINGS LLC 09/30/2020 Paydown 467,970 467,970 474,316 (6,346) (6,346) 467,970 18,668 01/31/2024 1PL 56540#-AA-3 MAPLELEAF MIDSTREAM INVESTMENTS, LLC 07/05/2020 Paydown 103,995 103,995 108,999 108,990 (4,995) (4,995) 103,995 4,742 09/30/2025 2PL 577778-AS-2 MACY'S RETAIL HOLDINGS LLC 08/15/2020 Paydown 50,000 50,000 50,000 50,000 50,000 4,875 02/15/2021 4FE 620076-BB-4 MOTOROLA SOLUTIONS INC 09/14/2020 Call @ 100.00 3,556,792 3,372,000 3,319,390 3,355,907 4,603 4,603 3,360,511 11,489 11,489 289,816 05/15/2022 2FE 629568-AV-8 NABORS INDUSTRIES INC 09/15/2020 Maturity @ 100.00 8,000,000 8,000,000 8,121,960 8,005,695 7,844 (13,539) (5,695) 8,000,000 400,000 09/15/2020 5FE STATEMENT AS OF SEPTEMBER 30, 2020 OF THE THE CINCINNATI INSURANCE COMPANY SCHEDULE D - PART 4 Show All Long-Term Bonds and Stock Sold, Redeemed or Otherwise Disposed of During the Current Quarter 1 2 3 4 5 6 7 8 9 10 Change In Book/Adjusted Carrying Value 16 17 18 19 20 21 22 11 12 13 14 15 Total Total Current Change in Foreign Bond NAIC Year's Book/ Exchange Book/ Interest/ Desig- Prior Year Current Other Than Adjusted Change in Adjusted Foreign Stock Stated nation Book/ Unrealized Year's Temporary Carrying Book Carrying Exchange Realized Dividends Con- and CUSIP Number of Adjusted Valuation (Amor- Impairment Value /Adjusted Value at Gain Gain Total Gain Received tractual Admini- Ident- For- Disposal Name Shares of Consid- Actual Carrying Increase/ tization)/ Recog- (11 + 12 - Carrying Disposal (Loss) on (Loss) on (Loss) on During Maturity strative ification Description eign Date of Purchaser Stock eration Par Value Cost Value (Decrease) Accretion nized 13) Value Date Disposal Disposal Disposal Year Date Symbol 71429M-AA-3 PERRIGO FINANCE UNLIMITED CO C 07/04/2020 Call @ 100.00 2,036,660 2,000,000 1,998,160 1,999,560 183 183 1,999,743 257 257 92,854 03/15/2021 2FE 717081-DR-1 PFIZER INC 08/12/2020 Maturity @ 100.00 500,000 500,000 567,704 509,044 (9,044) (9,044) 500,000 26,000 08/12/2020 1FE 828730-AB-7 SIMMONS FIRST NATIONAL CORP 08/13/2020 Stephens Inc. 2,042,500 2,000,000 2,000,000 2,000,000 2,000,000 42,500 42,500 87,778 04/01/2028 2FE 871503-AH-1 NORTONLIFELOCK INC 09/15/2020 Maturity @ 100.00 4,770,000 4,770,000 4,719,486 4,765,486 4,514 4,514 4,770,000 200,340 09/15/2020 3FE 91529Y-AH-9 UNUM GROUP 09/15/2020 Maturity @ 100.00 1,000,000 1,000,000 998,790 999,917 83 83 1,000,000 56,250 09/15/2020 2FE 3899999. Subtotal - Bonds - Industrial and Miscellaneous (Unaffiliated) 60,745,196 60,001,344 59,895,214 59,490,513 7,844 (7,992) (148) 59,964,680 49,647 49,647 3,649,661 XXX XXX 8399997. Total - Bonds - Part 4 97,733,763 96,971,344 98,225,150 96,516,252 7,844 (100,838) (92,994) 96,897,574 74,971 74,971 5,123,322 XXX XXX 8399998. Total - Bonds - Part 5 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 8399999. Total - Bonds 97,733,763 96,971,344 98,225,150 96,516,252 7,844 (100,838) (92,994) 96,897,574 74,971 74,971 5,123,322 XXX XXX 8999997. Total - Preferred Stocks - Part 4 XXX XXX XXX 8999998. Total - Preferred Stocks - Part 5 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 8999999. Total - Preferred Stocks XXX XXX XXX 037833-10-0 APPLE ORD 08/31/2020 RBC CAPITAL MARKETS 10,000.000 4,489,166 1,941,429 (105,162,684) 107,104,113 107,104,113 1,941,429 2,547,737 2,547,737 24,100 14448C-10-4 CARRIER GLOBAL ORD 06/30/2020 Various 0.000 47,352 16411R-20-8 CHENIERE ENERGY ORD 07/10/2020 Various 2,587.000 125,443 157,988 157,988 157,988 (32,545) (32,545) 254687-10-6 WALT DISNEY ORD 09/10/2020 Various 376,000.000 48,880,047 38,513,446 54,380,880 (15,867,434) (15,867,434) 38,513,446 10,366,601 10,366,601 330,880 29273V-10-0 ENERGY TRANSFER UNT 08/13/2020 Various 117,852.000 760,628 1,512,041 1,512,041 1,512,041 (751,414) (751,414) 71,890
49456B-10-1 KINDER MORGAN CL P ORD 09/24/2020 Various 28,921.000 363,306 607,338 612,258 (4,919) (4,919) 607,338 (244,032) (244,032) 22,414 E05.1 55336V-10-0 MPLX COM UNT 07/31/2020 Various 14,273.000 258,872 363,391 363,391 363,391 (104,519) (104,519) 19,625 594918-10-4 MICROSOFT ORD 09/02/2020 Stifel Nicolaus & Co. 117,950.000 26,871,423 6,000,785 18,600,715 (12,599,930) (12,599,930) 6,000,785 20,870,638 20,870,638 180,464 682680-10-3 ONEOK ORD 08/12/2020 Various 33,668.000 973,212 2,343,312 2,547,658 (204,345) (204,345) 2,343,312 (1,370,101) (1,370,101) 69,846 68902V-10-7 OTIS WORLDWIDE ORD 07/07/2020 Various 115,453.000 6,550,214 4,266,682 4,266,682 2,283,532 2,283,532 23,091 718549-20-7 PHILLIPS 66 PARTNERS COM UNT 09/15/2020 Various 24,769.000 706,310 1,330,099 1,298,816 (195,108) (195,108) 1,330,099 (623,789) (623,789) 53,114 958669-10-3 WESTERN MIDSTREAM PARTNERS COM UNT 09/24/2020 Various 7,681.000 55,325 151,239 151,239 151,239 (95,914) (95,914) 9,555 9099999. Subtotal - Common Stocks - Industrial and Miscellaneous (Unaffiliated) Publicly Traded 90,033,945 XXX 57,187,750 (25,537,699) 78,232,376 78,232,376 57,187,750 32,846,194 32,846,194 852,331 XXX XXX 9799997. Total - Common Stocks - Part 4 90,033,945 XXX 57,187,750 (25,537,699) 78,232,376 78,232,376 57,187,750 32,846,194 32,846,194 852,331 XXX XXX 9799998. Total - Common Stocks - Part 5 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 9799999. Total - Common Stocks 90,033,945 XXX 57,187,750 (25,537,699) 78,232,376 78,232,376 57,187,750 32,846,194 32,846,194 852,331 XXX XXX 9899999. Total - Preferred and Common Stocks 90,033,945 XXX 57,187,750 (25,537,699) 78,232,376 78,232,376 57,187,750 32,846,194 32,846,194 852,331 XXX XXX 9999999 - Totals 187,767,708 XXX 155,412,900 70,978,553 78,240,220 (100,838) 78,139,383 154,085,324 32,921,165 32,921,165 5,975,653 XXX XXX STATEMENT AS OF SEPTEMBER 30, 2020 OF THE THE CINCINNATI INSURANCE COMPANY
Schedule DB - Part A - Section 1 - Options, Caps, Floors, Collars, Swaps and Forwards Open N O N E
Schedule DB - Part B - Section 1 - Futures Contracts Open N O N E
Schedule DB - Part B - Section 1B - Brokers with whom cash deposits have been made N O N E
Schedule DB - Part D - Section 1 - Counterparty Exposure for Derivative Instruments Open N O N E
Schedule DB - Part D-Section 2 - Collateral for Derivative Instruments Open - Pledged By N O N E
Schedule DB - Part D-Section 2 - Collateral for Derivative Instruments Open - Pledged To N O N E
Schedule DB - Part E - Derivatives Hedging Variable Annuity Guarantees N O N E
Schedule DL - Part 1 - Reinvested Collateral Assets Owned N O N E
Schedule DL - Part 2 - Reinvested Collateral Assets Owned N O N E
E06, E07, E08, E09, E10, E11, E12 STATEMENT AS OF SEPTEMBER 30, 2020 OF THE THE CINCINNATI INSURANCE COMPANY SCHEDULE E - PART 1 - CASH Month End Depository Balances 1 2 3 4 5 Book Balance at End of Each Month 9 During Current Quarter Amount of Amount of 6 7 8 Interest Received Interest Accrued Rate of During Current at Current Depository Code Interest Quarter Statement Date First Month Second Month Third Month * FIFTH THIRD BANK CINCINNATI, OHIO 0.000 324,132,796 356,501,797 342,725,801 XXX U.S. BANK CINCINNATI, OHIO 0.000 24,084,827 27,663,607 29,844,086 XXX HUNTINGTON BANK CINCINNATI, OHIO 0.000 44,045,005 107,117,271 124,148,649 XXX 0199998. Deposits in ... depositories that do not exceed the allowable limit in any one depository (See instructions) - Open Depositories XXX XXX XXX 0199999. Totals - Open Depositories XXX XXX 392,262,627 491,282,673 496,718,535 XXX 0299998. Deposits in ... depositories that do not exceed the allowable limit in any one depository (See instructions) - Suspended Depositories XXX XXX XXX 0299999. Totals - Suspended Depositories XXX XXX XXX 0399999. Total Cash on Deposit XXX XXX 392,262,627 491,282,673 496,718,535 XXX 0499999. Cash in Company's Office XXX XXX XXX XXX 13,500 13,500 12,500 XXX
0599999. Total - Cash XXX XXX 392,276,127 491,296,173 496,731,035 XXX
E13 STATEMENT AS OF SEPTEMBER 30, 2020 OF THE THE CINCINNATI INSURANCE COMPANY SCHEDULE E - PART 2 - CASH EQUIVALENTS Show Investments Owned End of Current Quarter 1 2 3 4 5 6 7 8 9 Book/Adjusted Amount of Interest Amount Received CUSIP Description Code Date Acquired Rate of Interest Maturity Date Carrying Value Due and Accrued During Year 0599999. Total - U.S. Government Bonds 1099999. Total - All Other Government Bonds 1799999. Total - U.S. States, Territories and Possessions Bonds 2499999. Total - U.S. Political Subdivisions Bonds 3199999. Total - U.S. Special Revenues Bonds 3899999. Total - Industrial and Miscellaneous (Unaffiliated) Bonds 4899999. Total - Hybrid Securities 5599999. Total - Parent, Subsidiaries and Affiliates Bonds 6099999. Subtotal - SVO Identified Funds 6599999. Subtotal - Unaffiliated Bank Loans 7699999. Total - Issuer Obligations 7799999. Total - Residential Mortgage-Backed Securities 7899999. Total - Commercial Mortgage-Backed Securities 7999999. Total - Other Loan-Backed and Structured Securities 8099999. Total - SVO Identified Funds 8199999. Total - Affiliated Bank Loans 8299999. Total - Unaffiliated Bank Loans 8399999. Total Bonds 60934N-20-3 FEDERATED HRMS I PO IS 09/28/2020 0.140 461,973 52 152 8699999. Subtotal - All Other Money Market Mutual Funds 461,973 52 152
E14
8899999 - Total Cash Equivalents 461,973 52 152 *10677202050500103* SUPPLEMENT FOR THE QUARTER ENDING SEPTEMBER 30, 2020 OF THE THE CINCINNATI INSURANCE COMPANY DIRECTOR AND OFFICER INSURANCE COVERAGE SUPPLEMENT Year To Date For The Period Ended SEPTEMBER 30, 2020
NAIC Group Code 0244 NAIC Company Code 10677
Company Name THE CINCINNATI INSURANCE COMPANY
If the reporting entity writes any director and officer (D&O) business, please provide the following:
1. Monoline Policies
1 2 3 Direct Written Direct Earned Direct Losses Premium Premium Incurred $ 51,197,103 $ 48,775,532 $ 6,169,377
2. Commercial Multiple Peril (CMP) Packaged Policies
2.1 Does the reporting entity provide D&O liability coverage as part of a CMP packaged policy? Yes [ X ] No [ ] 2.2 Can the direct premium earned for D&O liability coverage provided as part of a CMP packaged policy be quantified or estimated? Yes [ X ] No [ ] 2.3 If the answer to question 2.2 is yes, provide the quantified or estimated direct premium earned amount for D&O liability coverage in CMP packaged policies 2.31 Amount quantified: $ 498,548 2.32 Amount estimated using reasonable assumptions: $ 2.4 If the answer to question 2.1 is yes, provide direct losses incurred (losses paid plus change in case reserves) for the D&O liability coverage provided in CMP packaged policies. $ 204,577
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